Companies in the UK have been at it for years… running off books of business and freeing up capital for insurance and reinsurance companies. Now, the opening up of the legacy market via new Rhode Island legislation is expected to allow insurance companies on the other side of the Atlantic to do the same.
For those of you who don’t know, the recently approved Rhode Island laws mean that for the first time in the state, insurers and reinsurers will be able to cede run-off commercial books with court-sanctioned finality. In March ProTucket, a subsidiary of Pro Global Insurance Solutions, became the first company to receive a licence to provide legacy transfer services in the state.
Many said that the US did not have the stomach to enact the legislation, but the tide of capital efficiency is a hard one to stem. The market needed this reform and Pro has made sure that it has been backing it all the way, not only supporting it, but also racing to become the first company to be licensed in the state.
There are still challenges ahead – this legislation and our licence are just stage one. But getting this far is monumental for the US insurance market, and we feel optimistic that we are clearing the hurdles one by one and can see the finish line.
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