Reinsurance by Kim Jong Il?

Fox News:

The cash-strapped regime of North Korea, which has a worldwide reputation for its criminal dealings in weapons sales, drugs, and near-perfect counterfeit U.S. $100 bills, may have found a new illicit source of hard foreign currency: international reinsurance fraud.

A growing number of major underwriters around the world strongly suspect that communist dictator Kim Jong Il's regime is running an elaborate major insurance and reinsurance scam on them, to the tune of tens of millions of dollars or more.

The alleged fraud involves a wide variety of North Korean industrial and personal calamities where insurers have been presented with perfect government-controlled documentation of accidents, including deaths, along with carefully gathered photographic evidence, all compiled in a startlingly brief time.

That paperwork is coupled with a resistance to letting foreign insurance adjusters examine some of the most crucial physical evidence, except after long delays and under a watchful eye, if at all.

The growing concern in the reinsurance industry is that the property damage being claimed is vastly overstated, and the circumstances of some alleged accidents may have been altered, or that deaths for which insurance payment is claimed may have had nothing to do with the accidents.

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"I've never seen anything like it before," says Payton, senior partner in the London-based international law firm of Clyde & Co., which specializes in insurance law. "The apparent involvement of the state in every detail of these claims, coupled with the impossibility of obtaining the usual corroborative facts independent of the state, makes these claims unique, in my experience."

The suspected scam involves the huge international market for reinsurance, in which insurers reduce their risk on every kind of accident, from environmental catastrophes and crop failure to airline and auto crashes, by reselling much of their policy exposure to other syndicates of insurers outside their own countries. Huge sums are routinely covered in reinsurance; globally, the reinsurance market last year was valued at some $1.5 trillion.

One of the world's most important reinsurance markets is Lloyd's of London, some of whose syndicates are represented by Clyde & Co. But a number of major players in the global reinsurance market have exposure to North Korean claims.

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Cut him off. Do not sell anymore insurance to the regime. To the extent that he is still attempting to finance projects this would shut them down too since the lenders would require the insurance. I would also look at denying claims where access to the site of the claim is denied in a reasonable period of time.