For Andrew Barile Consulting Corporation - Please Contact:
Andrew J. Barile MBA/CPCU
President & CEO
Post Office Box 9580
Rancho Santa Fe, California 92067
QuoteS from Each of Mr. Barile's Highly Regarded Textbooks on Finite Reinsurance
A Practical Guide to Financial Reinsurance by Andrew Barile, CPCU, 1991. Textbook 443 pages.
“By purchasing prospective aggregate excess of loss (type of finite reinsurance agreement), insurance companies can control the ultimate loss ratio in any given underwriting year. If the loss ratio exceeds a certain ratio, the financial reinsurance company provides reinsurance recoveries to reduce the loss ratio. These recoveries are paid back by the ceding insurance company over a period of time, usually three years. Financial reinsurance can give the ceding insurance company the conservative image it is trying to project to regulatory authorities, rating organizations, the banking community, and to the insurance buying public.”
Quote from Chapter Two – Reasons for Buying Financial Reinsurance, Stabilizes the Ceding Insurance Company’s Combined Ratio, pages 10 and 11, A Practical Guide to Financial Reinsurance, by Andrew Barile, CPCU.
A Practical Guide to Finite Risk Insurance and Reinsurance by Andrew Barile, CPCU, 1995. Textbook 341 pages.
“Whether written on a pro-rata or an excess of loss basis, traditional reinsurance agreements protect insurers by reducing their exposure to loss, on either specific risks or on general classes of catastrophe losses. Financial reinsurance agreements, on the other hand, transfer financial risks that could affect the insurance company’s realization of future profits by protecting the company’s bottom line from such threats as the loss of income through deterioration of the company’s loss reserves…. Leading deal makers and finite risk (reinsurers) most actively involved with this type of cover are searching diligently for a multi-year approach that will meet FASB’s requirements while still affording the income smoothing benefit of multi-year funded covers … Because finite risk insurance is relatively new, its proper accounting is still the subject of controversy. … The widespread belief that all reinsurance is essentially financial in nature has made it all the more difficult for industry members to agree on a meaningful distinction.”
Quote from Chapter One – Financial Insurance and Reinsurance Defined and Distinguished, Section 1.2 Financial Reinsurance, page 6 and Chapter Two, Accounting Considerations, page 16, A Practical Guide to Finite Risk Insurance and Reinsurance by Andrew Barile, CPCU.
ALPHA RISK MANAGEMENT
Alpha is a risk management/insurance consulting firm; Alpha is not engaged in the sale of insurance. Formed in 1973, the firm has offices in Long Island and Montreal. Alpha has served clients throughout the United States, Canada and Europe in the following industries:
Clients with an aggregate of more than 450 million square feet and have included:
· 250 major office buildings, example - the Empire State Building
· 200 regional malls, 360 community/strip centers
· 132,000 residential apartment units
· 20 luxury and 180 mid-range hotels
· Industrial facilities, warehouses, farmland
Commercial and Industrial Companies
· The largest food warehouse and distribution network – over $5 billion in revenues
· Steel manufacturer
· Rail car and wire cable manufacturer
· Construction equipment manufacturers
· Multinational telecommunications equipment manufacturer
· Second largest dairy producer in Canada
Alpha represents a number of multinational banks in regard to their real estate and construction finance activities in America. Total loans on which they have assisted exceed $50 billion. The various banks have their headquarters in:
Major Construction Projects
· $1.3 billion airport expansion
· Montblanc luxury products
· $340 million regional mall-OCIP
· Topps baseball cards
· Wrap-up for 5 construction projects
· The Collegiate School
· Construction - Empire State
· Princeton University
· Regis hair salons
When the scaffolding collapsed from the Conde Nast Tower in Times Square, the lead bank called Alpha in to evaluate the adequacy of coverage for all parties including the owner, the general contractor/construction manager and the outside professionals. When the bricks fell off a Madison Avenue building, Alpha was called in for a similar analysis and Harry Macklowe has been a retainer client ever since.
The Four Seasons Hotel in Nevis, West Indies, sustained over $72 million in damages as a result of Hurricane Lenny. Their lender appointed Alpha as the clearing authority to release insurance checks after verifying appropriate documentation, and subsequently the owner retained Alpha as consultant on their extensive holdings of luxury hotels.
· Review of existing insurance:
- Financial strength of insurers and licensing
- Deductibles, retentions, costs
- Adequacy of limits carried
- Need for specialty coverages
- Broadness of protective clauses
- Self insurance
· Insurance policy review and critique:
- All-Risk Property
- Boiler & Machinery
- Transit, Ocean Marine
- Employee Dishonesty, EFT, Computer Theft
- Workers Compensation
- Umbrella Liability
- Const. Managers E&O
- Design Team E&O
- Real Estate Mgt. E&O
- Professional Liability
- Directors & Officers
- Pollution Legal Liability
- Specialty coverages
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Additional ongoing advisory services:
- Group medical/dental
- Life insurance
- Long-term disability
- Travel accident
- Executive perks
- Retirement plans
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Preparation of comprehensive coverage specifications as part of complete underwriting package plus supervision of professional competitive bidding efforts among brokers, agents, and direct writers.
· Evaluation of internal Insurance/Risk Management administration and organization as well as outside service providers.
· Contract language and Certificate of Insurance programs to transfer liability to others.
· Records retention; formulation and implementation of disaster recovery programs.
· Assistance at time of loss; guidance in preparation of Proof of Loss; and assistance with settlement negotiation.
· Safety and loss control programs - General Liability, Workers Compensation, Fleet Safety, Employment Practices, Directors & Officers.
· CAM audits.
· Claims management program review to ensure that appropriate steps are in place to minimize unnecessary cost and litigation. Detailed periodic claims review designed to reduce reserves and future premiums
· Lease pointers from a risk management point of view.
SPECIFIC SUPPORT SERVICES FOR CONSTRUCTION PROJECTS
PROVIDED BY ALPHA RISK MANAGEMENT, INC. TO OWNERS AND LENDERS
· Work in concert with the owner’s attorneys, management, and construction team from the project’s conceptual stage through completion and occupancy to assure that the owner’s interests are protected before, during and long after project completion. This focuses on contract language, especially transfer of risk to others.
· Design insurance specifications for the project to ensure adequate insurance coverage is provided by construction managers, general contractors, subcontractors and design professionals.
· Review and negotiate with insurers and brokers to obtain the best coverage terms and conditions. Includes OCIP, Design Team Errors & Omissions coverages, Builders Risk, Pollution Liability coverages, and Bonding.
· Establish a certificate of insurance program to transfer liability to others and assist the owner in administering the program.
· Consult with the owner on the establishment of a comprehensive job safety program to minimize loss and its associated cost.