Excess Wc - Virginia
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Tip: If you are posting a market request, include the state abbreviation in your post title to get better responses.
Tip: If you are posting a market request, include the state abbreviation in your post title to get better responses.
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FiniteReUnderwriter
- Insurance Journal Enthusiast
- Posts: 22
- Joined: Mon Dec 29, 2003 6:57 am
In addition to your search for an XS market, you might want to consider a finite reinsurance structure to support the underlying SIR. It might provide some added efficiencies with regard to:
1) As alternative collateral (instead of cash, LOCs or self-insurance surety bonds) as may be required in a given state;
2) You might be able to obtain a quote whereby the premium charged is a discount off the expected loss pick for losses limited to $350,000 per Occurrence, plus obtain investment income crediting on the funds paid to the finite reinsurer, net of the reinsurer's margin and with profit share provision for repayment any balances that reinsurer holds that were not used to pay losses;
3) If the XS program does not contain an Agg Stop Loss cover on losses limited to $350,000, and if actual results exceed the initial projections, you might be able to get coverage from the finite program to cover that amount of unexpected liability that was not previously funded, with a "swing A/P" that can be paid in subsequent periods to provide some cashflow relief; and
4) If this client has been self-insured for some time, there may be an opportunity to do a Loss Portfolio Transfer ("LPT") that could possibly generate a "gain" for the district (i.e., the premium paid for the LPT is less than the amount of carried reserves transferred). This gain can either flow to the bottom line of this year's budget (considering that many districts are looking for any way to generate savings), or can be used to defer costs of the go-forward insurance program(s).
Best of luck. Regards,
1) As alternative collateral (instead of cash, LOCs or self-insurance surety bonds) as may be required in a given state;
2) You might be able to obtain a quote whereby the premium charged is a discount off the expected loss pick for losses limited to $350,000 per Occurrence, plus obtain investment income crediting on the funds paid to the finite reinsurer, net of the reinsurer's margin and with profit share provision for repayment any balances that reinsurer holds that were not used to pay losses;
3) If the XS program does not contain an Agg Stop Loss cover on losses limited to $350,000, and if actual results exceed the initial projections, you might be able to get coverage from the finite program to cover that amount of unexpected liability that was not previously funded, with a "swing A/P" that can be paid in subsequent periods to provide some cashflow relief; and
4) If this client has been self-insured for some time, there may be an opportunity to do a Loss Portfolio Transfer ("LPT") that could possibly generate a "gain" for the district (i.e., the premium paid for the LPT is less than the amount of carried reserves transferred). This gain can either flow to the bottom line of this year's budget (considering that many districts are looking for any way to generate savings), or can be used to defer costs of the go-forward insurance program(s).
Best of luck. Regards,