Interview with Mark Brattman - Claims Director

If your job were a piece of art, which one would it be?

I think it would be “The Thinker”. Not because I look like the statue, or because that statue was supposed to be part of a larger work called the “The Gates of Hell”, but because the role of a Claims Director calls for a lot of thinking. Is a claim covered? Was the member performing the insured service? Has the member done something wrong? If so, have they caused a loss? Are there any applicable exclusions? Are there any defences available? What are the commercial realities of the situation? These are the questions that run through my head, and that’s just when I open the file.

What is the most memorable claim you have handled?

A member had a very large claim against them of approximately $20m and then became insolvent, so the claim transferred to a direct claim against ITIC. We did not think the member had any liability and there were also certain issues with coverage that the ITIC board had to decide. At this time, the “pay to be paid” rule still applied even when a member was insolvent – so there were many parts to this claim. We had been defending the claim but when the member became insolvent we had to stop as the policy automatically terminated. We advised the insolvency practitioners to carry on defending the claim but they declined to do so.

This resulted in a $60m judgement in default being entered against them. The claimant then tried to enforce this judgment against ITIC directly. We attended an arbitration, where we had five people in attendance, to the claimants’ 25. After the hearing, the arbitrator found in our favour on every point. Our weakest point was the “pay to be paid” defence. The claimants stated they would use a Quistclose trust (essentially lending themselves the money to pay the claim) to get around the “pay to be paid” rule. Our defence was that it was not really in the spirit of “pay to be paid” and luckily the tribunal agreed on that point too.   

How are unusual, or particularly complex, claims handled?

They are not really handled any differently. We go through the same process whether they are simple or complicated. The main difference is that we may need more support from external lawyers or experts to form a position on the claim.

What’s the most surprising thing someone has taught you in your career?

I don’t think I have been taught something surprising. I do see many claims arising when  members have decided to help someone – often for free. People tend to think that if they work for free, they don’t have any legal liability, but you still do. This is definitely worth remembering.

What are your hobbies and favourite past times?

I used to play the guitar very badly. Now I don’t play at all. I have recently taken up badminton in an effort to get fitter. Although now both my arm and knee hurt all the time so I’m not really sure it’s having the desired effect.  More generally I like to spend time with family and friends – and enjoy eating out when I can. Of course, I also follow football (or soccer) and support Tottenham Hotspur for my sins. It was great to finally win something last season (the Europa League).

Can you share an interesting fact about yourself that your colleagues don’t know?

I’m pretty open so they probably know most things about me. However, some of my younger colleagues may not know that I ran a comedy club in London (whilst a trainee lawyer) for a few years. It was great fun but I gave it up when I bought my first apartment as it was too far out of London to get home late at night. I’d often go to the “artists club” after the event until 1am or 2am. There was no night tube or very late trains then.

What is one piece of advice that you would give to someone hoping to work in the insurance industry?

Go for it. It’s an interesting area and it requires multiple skills. I have always been on the claims side. That involves a lot of reading, from documents to policies, contracts and more. So if that interests you, claims would be good. However, if you prefer numbers, underwriting may be your calling!

If your workday had a soundtrack, what genre would it be?

I like rock music best so probably that. Something like The Wall by Pink Floyd or something by Metallica if I’m in a heavier mood.

If you weren’t working at ITIC, what would you be doing?

I have no idea. Probably working in a law firm. Although I always thought I’d have made a great chef. I have no idea why I think this. 

If you could write a message to the Claims Director of 2125, what would it say?

Have you closed the claims in India and Pakistan yet? I recently received an email from a broker in Pakistan regarding a claim stemming from an incident in 1976. I asked if it was a mistake.  It wasn’t. The court had just decided that our member had won.  But sadly it was to be appealed which may take another 50 years. The original claim was worth a few thousand dollars but with interest it was now in the millions. There was also a problem with cover; ITIC didn’t exist until 1992 so this claim couldn’t be covered by us.