ProTucket Insurance Company has become the first Rhode Island domestic insurer to be formed specifically for providing run-off portfolio transfer solutions. The move has been made possible under new state legislation which will allow companies to transfer their insurance business in a way that is already allowed in countries like the U.K.
ProTucket is a subsidiary of the service provider Pro Global Insurance Solutions plc (Pro), which provides the full range of consulting and outsourcing services to insurance and reinsurance companies.
Rhode Island’s Regulation 68 enables run-off portfolios of insurance contracts to be transferred from their current carrier into a protected cell within a Rhode Island domestic company. This process, similar to a transfer under Part VII of the UK’s Financial Services and Markets Act, brings full legal and financial finality to the transferring insurer.
“We estimate the value of U.S. books in run-off, which could benefit from the Rhode Island legislation, to be as much as $100 billion,” said Pro CEO Artur Niemczewski in a press release. “Pro Global has over 25 years’ experience in managing run-off internationally and is extremely proud to continue its leading position within the legacy market. We are excited about the pipeline of business this could bring.”
Niemczewski said that the new landmark legislation is expected to release billions in trapped capital and has the potential to improve the capital efficiency of the U.S. insurance industry. Previously trapped capital can then be used elsewhere to enhance insurer solvency, policyholder service and product innovation.
ProTucket provides a fully managed end-to-end service for insurers and reinsurers, wishing to use Rhode Island Regulation 68. ProTucket can design and deliver the Insurance Business Transfer Plan, establish the protected cell for acceptance of the book of business, and provide a full menu of services, including claims management, regulatory reporting and consulting.
“Over the next five to ten years we expect this business transfer process to become a standard industry practice and believe that ProTucket will be pivotal in fostering a vibrant run-off market,” Niemczewski said in the release.
Source: Pro Global Insurance Solutions plc
Topics Carriers Legislation
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