{{indexingdisabled}} Best's Review - February 2023 Edition - Guide to ICRs
 
72-73 72-73
Company Name/
Ultimate ParentAMB#
CurrentPrevious
FSR
ICR
Outlook/
Implications
FSR
ICR
Outlook/
Implications
EUROPE, MIDDLE EAST AND AFRICA (CONTINUED)
DowngradeCWAICA Reinsurance Corporation PLC
094468
B uNegativeB+Negative
bb+ uNegativebbb-Negative
Initial
Rating
Zurich Insurance plc
Zurich Insurance Group Ltd
085661
A+StableNR
aa-Positivenr
ASIA-PACIFIC
091421
AStableAStable
aPositiveaStable
AStableAStable
aPositiveaStable
B++ uDevelopingA uNegative
bbb uDevelopinga uNegative
AStableA-Positive
aStablea-Positive
AStableA- uPositive
aStablea- uPositive
BPositiveBStable
bb+Positivebb+Stable
A-NegativeA-Stable
a-Negativea-Stable
AStableAStable
a+StableaPositive
AStableAStable
a+StableaPositive
091102
AStableAStable
a+StableaPositive
AMERICAS
091083
AStableANegative
aStableaNegative
A+StableAPositive
aa-Stablea+Positive
B uNegativeB+Stable
bb uNegativebbb-Stable
Rating
Action
Business
Type
P
AIG Asia Pacific Insurance Pte. Ltd.
American International Group, Inc.
AIG Insurance Hong Kong Limited
American International Group, Inc.
Hotai Insurance Co., Ltd.
Ho Tai Motor Co., Ltd.
Meritz Fire & Marine Insurance Co., Ltd.
Meritz Financial Group Inc.
Partners Life Limited
Dai-ichi Life Holdings, Inc.
Provident Insurance Corporation Limited
Nominee No. 2 Limited
PT Asuransi Tugu Pratama Indonesia Tbk
PT Pertamina (Persero)
Starr International Ins (Asia) Limited
Starr International Company, Inc.
Starr Intl Ins (Singapore) Pte. Ltd
Starr International Company, Inc.
Starr Prop & Cas Ins (China) Co, Ltd
Starr International Company, Inc.
Outlook
Change
Outlook
Change
DowngradeP
P
P
091430
086271
UpgradeP
085600
UpgradeL
Outlook
Change
Outlook
Change
UpgradeP
091252
P
092486
P
086732
090772
UpgradeP
091708
UpgradeP
Barents Re Reinsurance Company, Inc.
Standard Capital Shareholdings, Inc.
HDI Global Seguros, S.A.
HDI V.a.G.
Insignia Life S.A. de C.V.
Proyecto Insignia, S.A.P.I. de C.V.
Outlook
Change
UpgradeP
P
086923
DowngradeL
091458
Domicile
Sierra Leone
Ireland
Singapore
Hong Kong
Taiwan
South Korea
New Zealand
New Zealand
Indonesia
Hong Kong
Singapore
China
Cayman Islands
Mexico
Mexico
70
Holding Companies
Rating
ActionCompany NameAMB#
CurrentPrevious
Domicile
FSR
ICR
Outlook/
Implications
FSR
ICR
Outlook/
Implications
Outlook
Change
American International Group, Inc.058702bbbPositivebbbStableDelaware, USA
Outlook
Change
Employers Holdings, Inc.
051243bbb-Positivebbb-StableNevada, USA
Outlook
Change
Fidelity & Guaranty Life Holdings, Inc.
050904bbb-Positivebbb-StableDelaware, USA
DowngradeFirst Acceptance Corporation
051487ccc-Negativeb-StableDelaware, USA
Outlook
Change
Lancashire Holdings Limited
051279bbb+Negativebbb+StableBermuda
Rating
Withdrawal
National Security Group, Inc.
058428nr
bb uDevelopingDelaware, USA
Outlook:
Positive, Negative, Stable.
Implications:
Positive, Negative, Developing.
Business Type: P
= Property/Casualty (Nonlife);
L
= Life;
H
= Health;
T
= Title;
C
= Composite.
Opinion Modifiers: u
= Under Review;
sf
= Structured Finance;
i
= Indicative Credit Rating Modifier;
s
= Syndicate Credit Rating Modifier
BEST’S REVIEW • FEBRUARY 2023
Best’s Credit Rating Actions
GUIDE TO BEST’S FINANCIAL STRENGTH RATINGS – (FSR)
A Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. An FSR is not assigned to
specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer’s claim
s-payment policies or procedures; the ability of the insurer to dispute or deny
claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contrac
t holder. An FSR is not a recommendation to purchase, hold or terminate
any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of a
ny particular policy or contract for a specific purpose or purchaser. In addition,
an FSR may be displayed with a rating identifier, modifier or affiliation code that denotes a unique aspect of the opinion.
Best’s Financial Strength Rating (FSR) Scale
Rating
Categories
Rating
Symbols
Rating
Notches*
Category
Definitions
Superior A+A++
Assigned to insurance companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations.
ExcellentAA-
Assigned to insurance companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations.
GoodB+B++
Assigned to insurance companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.
FairBB-
Assigned to insurance companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financia
l strength is vulnerable
to adverse changes in underwriting and economic conditions.
MarginalC+C++
Assigned to insurance companies that have, in our opinion, a marginal ability to meet their ongoing insurance obligations. Fina
ncial strength is vulnerable
to adverse changes in underwriting and economic conditions.
WeakCC-
Assigned to insurance companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. Financia
l strength is very
vulnerable to adverse changes in underwriting and economic conditions.
PoorD-
Assigned to insurance companies that have, in our opinion, a poor ability to meet their ongoing insurance obligations. Financial strength is extremely
vulnerable to adverse changes in underwriting and economic conditions.
* Each Best’s Financial Strength Rating Category from “A+” to “C”
includes a Rating Notch to reflect a gradation of financial s
trength within the category. A Rating Notch is expressed with either a second plus
“+” or a minus “-”.
Financial Strength Non-Rating Designations
Designation
Symbols
Designation
Definitions
E
Status assigned to insurers that are publicly placed, via court
order into conservation or rehabilitation, or the international
equivalent, or in the absence of a court order, clear
regulatory action has been taken to delay or otherwise limit policyholder payments.
F
Status assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the int
ernational equivalent.
S
Status assigned to rated insurance companies to suspend the outstanding FSR when sudden and significant events impact operation
s and rating implications cannot be evaluated
due to a lack of timely or adequate information; or
in cases where continued maintenance of the previously published rating opinion is in violation of evolving regulatory requirements.
NR
Status assigned to insurance companies that are not rated; may include previously rated insurance companies or insurance compan
ies that have never been rated by AM Best.
Rating Disclosure – Use and Limitations
A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or financial obligation’s relative creditworthiness. The opinion represents a
comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, business profile and enterprise risk management or, where appropriate,
the specific nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore
cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a defined population of categories and notches.
Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identic
al in terms of credit quality. Alternatively, they are alike in category
(or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the r
atings of a much larger population of entities or obligations, the categories
(notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AM Best) of
relative creditworthiness, it is not an indicator or predictor of defined impairment or default probability with respect to any specific insurer, issuer or financial obligation. A BCR is not investment advice,
nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilized as a recommendation
to purchase, hold or terminate any insurance policy, contract, security or
any other financial obligation, nor does it address the suitability of any particular policy or contract for a specific purpose o
r purchaser. Users of a BCR should not rely on it in making any investment
decision; however, if used, the BCR must be considered as only one factor. Users must make their own evaluation of each investm
ent decision. A BCR opinion is provided on an “as is” basis without
any expressed or implied warranty. In addition, a BCR may be changed,
suspended or withdrawn at any time for any reason at the
sole discretion of AM Best.
For the most current version, visit www.ambest.com/ratings/index.html. BCRs are distributed via the AM Best website at
www.ambest.com
. For additional information regarding the development of a BCR
and other rating-related information and definitions, including outlooks, modifiers, identifiers and affiliation codes, please refe
r to the report titled “
Guide to Best’s Credit Ratings
available at no charge
on the
AM Best website. BCRs are proprietary and may not be reproduced without permission.
Copyright © 2023 by A.M. Best Company
, Inc. and/or its affiliates.
ALL RIGHTS RESERVED.
Version 121719
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SUPERIOR
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BEST’S REVIEW • FEBRUARY 2023
71
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72
GUIDE TO BEST’S ISSUER CREDIT RATINGS – (ICR)
A Best’s Issuer Credit Rating (ICR) is an independent opinion of an entity’s ability to meet its ongoing financial obligations
and can be issued on either a long- or short-term basis. A Long-Term ICR is
an opinion of an entity’s ability to meet its ongoing senior financial obligations, while a Short-Term ICR is an opinion of an
entity’s ability to meet its ongoing financial obligations with original maturities
generally less than one year. An ICR is an opinion regarding the relative future credit risk of an entity. Credit risk is the
risk that an entity may not meet its contractual financial obligations as they come
due. An ICR does not address any other risk. In addition, an ICR is not a recommendation to buy, sell or hold any securities, contracts or any other financial obligations, nor does it address the suitability
of any particular financial obligation for a specific purpose or purchaser. An ICR may be displayed with a rating identifier or
modifier that denotes a unique aspect of the opinion.
Best’s Long-Term Issuer Credit Rating (Long-Term ICR) Scale
Rating
Categories
Rating
Symbols
Rating
Notches*
Category
Definitions
Exceptionalaaa-
Assigned to entities that have, in our opinion, an exceptional ability to meet their ongoing senior financial ob
ligations.
Superior aaaa+ / aa-Assigned to entities that have, in our opinion, a superior ability to meet their ongoing senior financial o
bligations.
Excellenta
a+ / a-Assigned to entities that have, in our opinion, an excellent ability to meet their ongoing senior financial ob
ligations.
Good
bbbbbb+ / bbb-Assigned to entities that have, in our opinion, a good ability to meet their ongoing senior financial obligat
ions.
Fair
bbbb+ / bb-
Assigned to entities that have, in our opinion, a fair ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse
changes in industry and economic conditions.
Marginalb
b+ / b-
Assigned to entities that have, in our opinion, a marginal ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to
adverse changes in industry and economic conditions.
Weak
cccccc+ / ccc-
Assigned to entities that have, in our opinion, a weak ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse
changes in industry and economic conditions.
Very Weakcc-
Assigned to entities that have, in our opinion, a very weak ability to meet their ongoing senior financial obligations. Credit quality is very vulnerable
to adverse changes in industry and economic conditions.
Poor
c
-
Assigned to entities that have, in our opinion, a poor ability to meet their ongoing senior financial obligations. Credit quali
ty is extremely vulnerable
to adverse changes in industry and economic conditions.
* Best’s Long-Term Issuer Credit Rating Categories from “aa” to
“ccc” include Rating Notches to reflect a gradation within the
category to indicate whether credit quality is near the top or bottom of a particular
Rating Category. Rating Notches are expressed with a “+” (plus) or “-” (minus).
Best’s Short-Term Issuer Credit Rating (Short-Term ICR) Scale
Rating
Categories
Rating
Symbols
Category
Definitions
StrongestAMB-1+Assigned to entities that have, in our opinion, the strongest ability to repay their short-term financial obliga
tions.
Outstanding AMB-1Assigned to entities that have, in our opinion, an outstanding ability to repay their short-term financial obl
igations.
SatisfactoryAMB-2Assigned to entities that have, in our opinion, a satisfactory ability to repay their short-term financial obl
igations.
AdequateAMB-3
Assigned to entities that have, in our opinion, an adequa
te ability to repay their short-term financial obligations; however, a
dverse industry or economic conditions
likely will reduce their capacity to meet their financial commitments.
QuestionableAMB-4
Assigned to entities that have, in our opinion, questionable credit quality and are vulnerable to adverse economic or other external changes, which could have a
marked impact on their ability to meet their financial commitments.
Long- and Short-Term Issuer Credit Non-Rating Designations
Designation
Symbols
Designation
Definitions
d
Status assigned to entities (excluding insurers) that are in default or when a bankruptcy petition or similar action has been
filed and made public.
e
Status assigned to insurers that are publicly placed, via court
order into conservation or rehabilitation, or the international
equivalent, or in the absence of a court order, clear
regulatory action has been taken to delay or otherwise limit policyholder payments.
f
Status assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the in
ternational equivalent.
s
Status assigned to rated entities to suspend the outstanding ICR when sudden and significant events impact operations and ratin
g implications cannot be evaluated due to a lack of
timely or adequate information; or in cases where continued
maintenance of the previously published rating opinion is in violat
ion of evolving regulatory requirements.
nr
Status assigned to entities that are not rated; may include previously rated entities or entities that have never been rated
by AM Best.
Rating Disclosure: Use and Limitations
A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or financia
l obligation’s relative creditworthiness. The opinion represents a comprehensive
analysis consisting of a quantitative and qualitative evaluation
of balance sheet strength, operating performance, business pro
file and enterprise risk management or, where appropriate, the specific nature
and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as
a fact or guarantee of future credit quality and therefore cannot be described
as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with
a defined population of categories and notches. Entities or obligations assigned
the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality. Al
ternatively, they are alike in category (or notches within a category), but
given there is a prescribed progression of categories (and notches)
used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise
subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reflects the opinion of A.M. Best Rating Services, Inc. (AM Best) of relative creditworthiness, it is not an indicator
or predictor of defined impairment or default probability with respect to any specific insurer, issuer or financial obligation. A
BCR is not investment advice, nor should it be construed as a consulting or
advisory service, as such; it is not intended to be utilized as a recommendation to purchase, hold or terminate any insurance policy, contract, security or any other financial obligation, nor does it address
the suitability of any particular policy or contract for a specific purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered
as only one factor. Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is”
basis without any expressed or implied warranty. In addition, a BCR may
be changed, suspended or withdrawn at any time for any reason at the sole discretion of AM Best.
For the most current version, visit www.ambest.com/ratings/index.html. BCRs are distributed via the AM Best website at
www.ambest.com
. For additional information regarding the development of a BCR
and other rating-related information and definitions, including outlooks, modifiers, identifiers and affiliation codes, please refer to the report titled “
Guide to Best’
s Credit Ratings
” available at no charge on
the AM Best website. BCRs are proprietary and may not be reproduced without permission.
Copyright © 2023 by A.M. Best Company,
Inc. and/or its affiliates.
ALL RIGHTS RESERVED.
Version 121719
BEST’S REVIEW • FEBRUARY 2023
Best’s Credit Rating Actions
Acquisitions and Name, Ownership and Domiciliary Changes
Great American Life Insurance, Reserve National Insurance and LIO
Insurance are among the U.S. life/health and property/casualty insurers that
have experienced a corporate change.
LIFE/HEALTH
Name Changes
Children’s Community Health Plan Inc. (AMB# 065070)
, Milwaukee, WI, USA. This company changed its name
to Chorus Community Health Plans Inc. on Sept. 1, 2022.
Great American Life Insurance Co. (AMB# 006474)
, Cincinnati, OH, USA. This company changed its name to
MassMutual Ascend Life Insurance Co.
on
July 1, 2022.
Pavonia Life Insurance Company of New York (AMB# 008256)
, New York, NY, USA. This company changed
its name to Hudson Life and Annuity Co. on Aug. 23, 2022.
Reliance HMO Inc. (AMB# 062371)
, Farmington Hills, MI, USA. This company changed its name to CCA Health
Michigan Inc. on Aug. 4, 2022.
Tufts Health Freedom Insurance Co. (AMB# 061905)
, Concord, NH, USA. This company changed its name to
UnitedHealthcare Freedom Insurance Co. on Aug. 1, 2022.
Acquisitions & Ownership Changes
Commercial Travelers Life Insurance Co. (AMB# 007361)
, Utica, NY, USA. In December 2022, this company
was acquired by Dayforward Life Insurance Company Inc. from Insurance Strategies Holdings LLC, a majority-
owned subsidiary of National Guardian Life Insurance Co.
Nevada Dental Benefits Ltd. (AMB# 065074)
, Las Vegas, NV, USA. This company was acquired by PrimeCare
Benefits Group Inc., a majority-owned subsidiary of National Guardian Life Insurance Co., from PrimeCare Benefits
Inc. on Jan. 31, 2022.
Pavonia Life Insurance Company of Michigan (AMB# 009129)
, Southfield, MI, USA. This company was
acquired by AxarRe SPC Ltd., a subsidiary of Spartan Insurance Holdings LLC, from GBIG Holdings LLC, and the
Michigan Department of Insurance and Financial Services officially closed the receivership file on Sept. 15, 2022.
Reserve National Insurance Co. (AMB# 006998)
, Chicago, IL, USA. This company was acquired by Medical
Mutual of Ohio from United Insurance Company of America, a subsidiary of Kemper Corp., on Dec. 1, 2022.
Settlers Life Insurance Co. (AMB# 009322)
, Madison, WI, USA. This company was acquired by Everly Holdings
LLC from National Guardian Life Insurance Co. on July 1, 2022.
PROPERTY/CASUALTY
Domiciliary Change
LIO Insurance Co. (AMB# 020918)
, Phoenix, AZ, USA. This company redomesticated to Arizona from California
on Sept. 30, 2022.
BR
BEST’S REVIEW • FEBRUARY 2023
73
Corporate Changes
In Other News ...
A roundup of news from publishers around the globe. Access
to some sites may require registration or subscription.
AM Best’s Preferred
Publisher Participants
74
Artemis
|
www.artemis.bm
North America winter storm, blizzards & freeze has billion dollar
loss potential
Asia Insurance Review
|
www.asiainsurancereview.com
Global: Insurers’ total systemic risks are rising, per IAIS study
Auto Insurance Report
|
https://riskinformation.com/
Everything Is Bigger in Texas, Including Auto Claims Challenges
Benefits Pro
|
https://www.benefitspro.com/
Winning the 2023 talent wars will take a shift in benefits design
and management
Captive Insurance Times
|
https://www.captiveinsurancetimes.com/
Guernsey Finance appoints duo to board of directors
Captive International
|
https://www.captiveinternational.com/
Labuan IBFC continues to see captive growth
Carrier Management
|
www.carriermanagement.com
Here to Stay: Why ‘Weather Whiplash’ Is a Growing Concern
for Insurers
Claims Magazine
|
https://www.
propertycasualty360.com/claims-
magazine/current-issue
/
10 states with the lowest natural disaster risk
Commercial Risk
|
https://www.commercialriskonline.com/
Insurance industry launches campaign to take on US plaintiff
bar and combat social inflation
Commercial Risk Europe
|
https://
www.commercialriskonline.
com/cr-europe
/
German risk managers advised to prepare for rising corporate
crime
Emerging Risks
|
https://emergingrisks.co.uk/
Bolstering European cyber risk management
Global Reinsurance
|
https://www.globalreinsurance.com/
BMA introduces ‘targeted enhancements’ to regulatory regime
Health Payer Specialist
|
https://www.healthpayerspecialist.com/
BCBS Ousts Centene from $136B Military Contract
Inside P&C
|
https://www.insidepandc.com/
P&I clubs to cancel Ukraine war cover from 1.1 amid reinsurers’
retreat
Insurance & Investment Journal
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https://insurance-portal.ca/
Ontario expands use of biosimilar drug treatments
Insurance Age
|
https://www.insuranceage.co.uk/
FCA Warns of Broker Clone
Insurance Insider
|
https://www.insuranceinsider.com/
UK government appoints Magnus as independent adviser on
ministers’ interests
Insurance Journal
|
https://www.insurancejournal.com/magazines/
NAIC Has ‘Deep Concerns’ About FIO Bid to Collect Climate
Change Data From Insurers
Insurance Times
|
https://www.insurancetimes.co.uk/
Quick thaw delivered major claims impact from UK cold snap
InsuranceAsia News
|
https://www.insuranceasianews.com/
Asian M&A: Deals That Shaped the Market in 2022
InsuranceERM
|
https://www.insuranceerm.com/
Loss prevention tech has no impact on insurance pricing
Intelligent Insurer
|
https://www.intelligentinsurer.com/
Move the needle: how technology can drive better risk selection
and underwriting
Life Annuity Specialist
|
https://www.lifeannuityspecialist.com
Hybrid Work May Change as Employers Start to Gain Upper Hand
Middle East Insurance Review
|
https://www.meinsurancereview.com/
Turkiye: 2023 will be a year of sustainable development and
growth for insurance market
P&C Specialist
|
https://www.pandcspecialist.com/
Insurers Plan Small Salary Boost for 2023
Property Insurance Report
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https://riskinformation.com/
Wildfire Risk Pushes California Market to the Brink of Disaster
Reinsurance News
|
https://www.reinsurancene.ws/
Lloyd’s Council grants approval to Lime Syndicate Management
Retirement Income Journal
|
https://retirementincomejournal.
com/article/welcome-to-rijadvisor/
A Recession’s Threat to Retirees and Near Retirees
Risk & Insurance
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https://riskandinsurance.com/
Small Businesses Come in All Shapes, Sectors and Sizes. So
Too, Do Their Exposures
Risk.Net
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https://www.risk.net/
How did EU regulators miss the FTX horror story?
Strategic Risk
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https://www.strategic-risk-europe.com/
Only 20% of firms feel prepared for supply chain disruptions -
study
The Insurer
|
https://www.theinsurer.com/
Howard and Hartwig among new members of Federal
Reserve’s IPAC
Thompson’s World Insurance News
|
http://thompsonsnews.com/
Clients look to self-insurance for cyber
Publications and sites listed above are participants in AM Best’s Preferred Publisher Program.
www.ambest.com/sales/preferredpublisher
BEST’S REVIEW • FEBRUARY 2023
Preferred Publisher Program
The Importance of Early Case Management in the
Litigation Process
Preparing witnesses for depositions and conducting mock trials can help
identify case themes and weaknesses.
S
teve Wood, Ph.D., is a litigation
consultant at Courtroom Sciences
Inc., a national litigation consulting and
litigation support firm based in Irving,
Texas. Wood uses his social psychological
expertise to help clients understand
the juror decision-making process and
maximize the likelihood of favorable case
outcomes. He also assists clients with
case-related activities, including pretrial
research, witness effectiveness training,
case theme development, supplemental
juror questionnaires and jury selection. His
work has been published in various peer-
reviewed academic journals, as well as
several scholarly magazines.
John Czuba, managing editor of Best’s Insurance
Professional Resources, spoke with Wood about the
advantages of early case management. Following is an
edited transcript of the interview.
What is early case management?
When I reference early case management, what I’m
referring to is this idea of getting out ahead of things on
the plaintiff’s bar and developing your themes early on
in the case, assessing the aspects, the strengths, the
weaknesses of your case early on rather than waiting
right to the eve of trial. Also, making sure that you
properly prepare your witnesses for depositions.
Why is ea
rly ca
se management so important?
The r
eason why we talk about it, to use a boxing
analogy, is that you can’t wait until the sixth round to
start throwing punches. You can’
t play defense for five
r
ounds, and then all of a sudden, in the sixth round, say,
“OK, now I’m going to come out, now I’m going to start
going on the offensive.”
When you start doing that, you’ve already been
behind the eight ball for so long that your opponent has
the advantage over you and has started ahead of you
and you’re trying to play catch-up. The plaintiff’s bar is
very, very good at doing this. They’re using early case
management often.
I hear and talk to plaintiff attorneys, and they talk
about how they’ve used focus groups for certain cases
four, five, six times. Sometimes, they’ll be doing this
before they even go into depositions with experts. They
go in knowing, what are the key aspects? What are
the key admissions that they need to get? What are
the key themes? What are the key pieces of evidence
that they need to pull out of those witnesses? They’re
going in much more informed into even the
deposition.
The other reason why early case
management is so important, from a
defense side, is that when you have time,
when you have had the ability to look at
cases early, you have time to adjust your
case theory. You have time to create new
exhibits. What we often find when we’re
doing focus groups or when we’re doing
mock trials is that jurors will bring up
certain aspects and say, “I would like to
know more about a certain topic. I’d like to
hear from a certain witness. Has anybody
looked at this? Has a demonstrative been
made for this certain aspect?”
When discovery is closed, a lot of times, we know
we have to talk with clients and say, “Hey, these are all
the things that jurors wanted to see,” and then we get,
“That’s great, but discovery is closed.”
You missed the opportunity to beef up certain things
that could be beneficial to your case because you didn’t
realize those were aspects that jurors found to be so
important.
What prevents insurance companies and their
insureds from performing early case management?
A lot of it ends up coming down to a lack of
information or a lack of education around the
importance of it. People don’t understand the value of
early case management. I often hear from attorneys
or insurance companies, “We have attorneys, and
they prepare our witnesses. Why do we need to hire
someone who’s not an attorney to come in and prepare
the witnesses? That’s what my attorneys do. Can’t my
attorneys do that?” The short answer is “no.”
The reason I say that is not because of any
deficiencies on the part of the attorneys. We work with
some world-class attorneys. They have a different skill
set. I bring my social psychological expertise to the
deposition training process. It’s a partnership between
the attorneys and me, where they focus on the legal
stuff. I don’t talk about anything from the legal aspects,
or any sort of motion in limine topics, or whether they
should or shouldn’t answer certain questions because
it’s privileged, or any of those types of things. I leave
that all to the attorney, but I do the psychological
Steve Wood
AM Best Audio
John Czuba
is managing editor of Best’s Insurance Professional
Resources. He can be reached at
john.czuba@ambest.com.
Visit
bestsreview.ambest.com
to
listen to the interview with
Steve Wood.
BEST’S REVIEW • FEBRUARY 2023
75
Insurance Professional Resources