BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Tracking old policies can pose challenge

Old insurance policies

Securing accurate and complete historical insurance information during a merger or acquisition is a key part of due diligence but can be a daunting task, experts say.

“You want to make sure you have access to as much history as possible of the company you are acquiring,” said Matthew Schneider, co-CEO of M&A and transaction solutions for Aon PLC in New York. “If you can get the historical coverage that can help as well.”

“Typically, the risk manager goes to the data room to scrape up whatever information is available,” said John Kelly, founder and managing partner at risk consultants Hanover Stone Partners LLC in New York.

Details on historical insurance coverage, however, can be hard to find, he said.

“Very often, old historical policies are not put into the data years,” and may extend back only five years or so, Mr. Kelly said. Policies offering potential coverage for longtail liabilities may not be in the data room, he said.

Acquirers must be aware of “the limitation of information and the availability of information,” Mr. Schneider said.

“You can always ask for more information, but you can’t always get more information.”






Read Next

  • Risk managers aid acquisition process

    Risk managers at companies involved in mergers and acquisitions face challenges in consolidating insurance programs but can also help the transactions run smoothly and spot potential problems, if they are given a seat at the M&A table early, experts say.