26 June, 2018. NEW YORK, USA:
Pro Global welcomes new amendments to Rhode Island’s Voluntary Restructuring of Solvent Insurers Law and the Rhode Island Protected Cell Companies Act that will now make run-off transactions easier to execute and will open the door to a $100 billion market in US transactions via books of legacy business.
On May 8, Pro testified in front of a House Committee to demonstrate the continued interest from business, industry bodies and insurance stakeholders for the Rhode Island statute. Pro highlighted how the legislation will provide opportunities to the industry, improve the efficiency of business and drive job creation in Rhode Island and across the state. Subsequently, House Bill 8163 was passed unanimously, 70-0, and is currently on its way to the Governor for signature – which when signed, will come into immediate effect.
Pro Global did not act alone, but was part of a strong team that supported the changes. The Rhode Island Department of Business Regulation (Insurance Division), the Property Casualty Insurers Association (PCI), the Providence Rhode Island office of international law firm Locke Lord, the Governor’s Chief of Staff Brett Smiley and Governor Raimondo all supported the effort.
“I’d like to thank Superintendent of Insurance, Elizabeth Dwyer, and everyone who worked so diligently to get these amendments passed,” said Mory Katz, Managing Director of US, at Pro Global. This bill has the potential to ignite economic development and bring hundreds of millions in capital to Rhode Island.”
Mr. Katz added: “The changes that have been passed will now strengthen the existing regulation by reducing potential ambiguities in how the law is applied.”
Rhode Island’s Voluntary Restructuring of Solvent Insurers Law will allow insurers and reinsurers to cede run-off commercial books with court-sanctioned finality in a similar fashion to a Part VII of the UK’s Financial Services and Markets Act in the UK.
Last year, Pro Global announced that ProTucket Insurance Company had become the first Rhode Island domestic insurer expressly created to provide run-off portfolio transfer solutions under Rhode Island’s Voluntary Restructuring of Solvent Insurers Law.
Mr. Katz said, “The changes to the legislation allow not only Rhode Island to be a leader in the market, but also positions Pro Global, via its ProTucket entity, to take a lead position in this potentially lucrative market.”
“The amendments to the Voluntary Restructuring of Solvent Insurers Law and Protected Cell Companies Act show there is a real willingness in government, not just business, to make the law work. There is a consensus that it’s good for the industry and good for the State.”
“This establishes Rhode Island as a center of excellence for the US run-off sector. Rhode Island is being talked about at conferences all over the country and dozens of large insurers have waited for these changes to be enacted. There will be job creation for all sorts of insurance professionals – actuaries, accountants and lawyers.”
“ProTucket expects to file the first Insurance Business Transfer plan within the next 12 months” Mr. Katz added.
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