Management Consulting
Aon
Full Credential Description
The case study addresses the significant risk of insolvency challenges faced by companies, particularly the threat of insolvency administrators reclaiming payments made to them by insolvent entities. Despite reforms in insolvency law, the risk remains substantial, as administrators can demand repayment of funds received long before the insolvency declaration, potentially leading to severe financial difficulties for the affected companies. This risk is exacerbated by the difficulty in assessing the likelihood and extent of potential claims, especially when companies are aware of the financial distress of their clients. Aon has developed a tailored solution to mitigate the insolvency challenge risk. This innovative insurance product covers retroactive claims for payment defaults and includes support in assessing the risk and designing appropriate insurance coverage. The solution encompasses all claims arising from insolvency challenges, even those related to already filed insolvency proceedings. Aon employs specialized attorneys to evaluate claims made by insolvency administrators and to manage disputes. In cases where the insolvency challenge is deemed valid, the insurance covers both the damages from repayment and the legal costs incurred in hiring attorneys. This comprehensive approach not only provides financial protection but also offers peace of mind to companies navigating the complexities of insolvency risks, ensuring they are better equipped to handle potential claims and maintain their financial stability.