Obviously, it is more difficult to operate an insurance group than a single insurance company. Employees must be painstakingly trained to observe corporate formalities so that courts will not treat the entities in the group as alter egos of one another and allow plaintiffs to pierce the corporate veil. For example, all insurance policies and all claim-related documents must consistently reference the relevant company within the group, and the flows of premiums and claim payments must be carefully recorded against the books of the correct company.
