| Claim: | [View Claim Details] |
Claim activity in 2001 reached a bit of a plateau after a two-year decline from the chaotic levels of 1997 and 1998. Claims increased slightly in number but rose dramatically in dollar amount. The spread of countries experiencing claim activity remained stable while the number of claims filed by Johnstone Downey Klein clients increased 23% from last year to this (43 to 35). Dollar volume of claims however, increased a dramatic 330% ($10.3 million to $44.3 million). For the first time in JDK history the average claim size increased. Due predominately to certain large claims in Argentina average claim size increased from the $200,000 -$300,000 range to just over $1,000,000. The United States remained as the most active region in the world in which our clients experienced the most difficult payment experience under insurance cover. Latin America ( due again to the Argentine problems) produced the highest levels of dollar losses. European claim activity remained stable although the United Kingdom saw a slight spike up. Asia again saw little claim activity but insurers have remained cautious on the region. |
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| Reschedulings: | [View Rescheduling Details] |
| Reschedulings rose with some vigor in 2001. Driven by economic troubles in the United States reschedulings rose from 14 to 26. The dollar amount was the significant issue as reschedulings rose from just over $7 million to $27 million. Again, after the problems faced in the United States it was Latin America that created the most distressed debt problems. | |
| Note: ** Broker Note: Reschedulings are situations that arise when a buyer, unable to pay his debt on time, requests further time to pay. The insured must seek and receive written approval from the insurer before formally agreeing with his customer. If the insurer agrees, the due date of the obligation is changed and coverage remains in place. Reschedulings are taken very seriously as they can be a prelude to a claim. |
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