Arrowood Indemnity, the runoff entity for Royal Indemnity and
Royal Globe (Royal), was declared insolvent by the Delaware
commissioner of insurance on November 6, 2023. This action was
taken through the filing of a complaint for entry of a liquidation
and injunction order with a bar date. The commissioner has
suggested a bar date of January 15, 2025, which will be the last
date claims against Arrowood will be allowed. Thousands of
policyholders seeking insurance recovery may be affected.
Background
Arrowood Indemnity was approved to runoff claims against Royal
by the Delaware insurance commissioner in 2007. In response to
policyholder criticisms of the establishment of Arrowood, the
commissioner required the appointment of a claims monitor, who was
required "to continually monitor indemnity reserve adequacy,
litigation management, claim denials, and all other aspects of
sound claims management." Order at 6.
