First insurer launched in US providing run-off portfolio transfer
ProTucket Insurance Company has been launched in the US for providing run-off portfolio transfer solutions, the first of its kind in the US, according to the company.
ProTucket is a subsidiary of London-based Pro Global Insurance Solutions, a consultancy and service provider focused on the global re/insurance industry, and has been granted a licence from the state of Rhode Island.
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 UK. 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.
"We estimate the value of US books in run-off, which could benefit from the Rhode Island legislation, to be as much as $100 billion," said Artur Niemczewski, CEO of Pro.
"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 legislation is expected to release billions in trapped capital and has the potential to improve the capital efficiency of the US insurance industry. Previously trapped capital can then be used elsewhere to enhance insurer solvency, policyholder service and product innovation, according to the company.
ProTucket provides a fully managed end-to-end service for insurers and reinsurers, wishing to use Rhode Island Regulation 68. ProTucket services include designing and delivering an insurance business transfer plan, establishing the protected cell for acceptance of the book of business, and providing a full menu of services, including claims management, regulatory reporting, and consulting.
"We are honored to be the first company to be granted a license to implement Regulation 68 and are passionate about the benefits it will bring to our clients and the US insurance market," said Mory Katz, head of Pro US.
Niemczewski added: "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."
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