The Brattle Group has been providing expert analysis and testimony addressing a broad range of issues affecting the insurance industry for over 25 years. We have worked on cases involving life insurance, tax and regulatory issues, and real estate and environmental issues. Our work has also been used in the funding of bankruptcy trusts, assessing corporate reserves, and supporting re-insurance claims.
In Starr v. US, a Brattle principal developed expert testimony on the conduct of the Federal Reserve in acting as lender of last resort to systemically important financial institutions as the financial crisis developed in 2008. This analysis examined the historical uses of Section 13(3) of the Federal Reserve Act and the differences in treatment of institutions that were provided assistance in response to the crisis. The various actions of the Federal Reserve were explained in the context of the structure of the U.S. financial markets, the role of the shadow banking system, and how a combination of factors precipitated a run in the repo system as market liquidity collapsed.
A Brattle expert testified for plaintiff’s counsel in connection with the insolvency of a Florida-based property insurance conglomerate, and the inability of the conglomerate to raise additional capital in 2005.
Members of The Brattle Group issued an economic study sponsored by a coalition of foreign insurance/reinsurance companies that analyzed the economic impact of imposing higher taxes on reinsurance ceded by U.S. insurers to their foreign parents. The study concluded that U.S. consumers would have to pay an additional $10 to $12 billion per year in insurance premiums (or 20 percent) to maintain their current coverage if Congress passes the proposed legislation. The impact would be felt more severely in several catastrophe-prone states and lines of insurance.
In a shareholder class action lawsuit against a life insurance company, we supported an accounting professor and expert in analyzing several of the company’s statutory reserve securitization transactions and their link to the insurer’s accounting and disclosure of valuation allowance for deferred tax assets.
A member of The Brattle Group developed one of the basic models of insurance regulation used for property and casualty insurance rates. We have assisted in a number of insurance and regulatory proceedings to evaluate rate surplus and other cost recovery issues.
Complex business and legal matters require intellectually honest and analytically rigorous solutions that are thoughtfully developed and clearly communicated. We apply economic and finance principles with uncompromising quality to achieve clarity in the face of complexity. Independent analysis, responsive execution, and compelling presentation. That’s Brattle. That’s the Power of Economics.