David Perla speaks with Carrier Management about subrogation claims
- Risk management & insurance
Burford Vice Chair David Perla speaks with Carrier Management about subrogation claims, where he says that "the sale of an insurer’s subrogation rights to an investment firm like a hedge fund makes complete sense."
Perla continues, "'The fundamental difference between an insurance company and a hedge fund is that the insurance company is bound by capital adequacy regulations, possibly impelling it to settle earlier or cheaper than it would prefer. A hedge fund, which is not regulated in terms of capital adequacy, has more latitude in terms of timing and the amount of settlement.'"
