Case Studies
J.S. Held Releases Insights on Risks & Opportunities Expected to Impact Organizations in 2025
Read MoreThe resort’s beach and landscaping were damaged by the waves caused by Cyclone Kyarr making landfall near Muscat. As a result, the insured claimed that it had to cancel several events in the beach area and had to offer lower rates due to the compromised landscaping. Further, it suggested hotel closure was required for several months while noisy work utilized the yellow plant (reinstatement of the breakwater, etc.).
The original claim presented totaled around USD 10M, comprising loss of event bookings, lower rates, and hotel closure during the repair works. We utilized STR reports for the subject property and its competitive set, which suggested lower rates were indicative of the competitive landscape instead of the damage sustained.
J.S. Held’s analysis identified that many events could occur in other areas of the resort. Further, the claim (based on the historic run rate) also included several large one-off events which would not be repeated (and hence were excluded from our analysis). We also made further adjustments for the mourning period in January and February 2020 following the passing of the late Sultan (when events/entertainment was halted). The further cancellations/non-bookings in late February/March 2020 were attributed to the worldwide outbreak of COVID-19, as opposed to the damage. The significantly reduced occupancy of the resort due to COVID-19 coincided with the period that the repair work took place. We considered the performance of the adjacent properties (also owned by the insured) to assess the closure losses.
There were a number of other areas of claim which were made difficult to quantify due to COVID-19. We understand that the BI aspect of the claim was concluded at USD 1M based on scenarios prepared by J.S. Held following lengthy discussions between the insured’s broker and the lead reinsurer.
Daniel Thorpe
Executive Vice President
Forensic Accounting - Insurance Services
+971 56 658 3620
[email protected]
> Business Interruption / Lost Profits
We provide specialized expertise in the quantification of damages related to claims and disputes involving business interruption and lost profits. Our team combines their financial expertise and diverse backgrounds to effectively evaluate the insured's/claimant's operations and industry/market-specific factors, to quantify interruptions and lost profits.
> Forensic Accounting
Our Forensic Accounting Practice includes Certified Public Accountants, Certified Fraud Examiners, Certified Financial Forensics experts, and other financial experts who specialize in financial investigations, dispute resolution, and regulatory compliance. We deliver the truth behind the numbers in financial matters involving insurance claims and disputes, business interruption/lost profits, cyber damages, Delay in Start-Up (DSU) / soft costs, extra expense, family disputes, fraud, labor & employment disputes, personal injury damages, and bankruptcy/insolvency.