NEW YORK--(BUSINESS WIRE)--ProTucket Insurance Company has become the first Rhode Island domestic insurer to be formed specifically for providing run-off portfolio transfer solutions. The ground-breaking 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.
ProTucket is a subsidiary of the well-established service provider Pro Global Insurance Solutions plc (Pro), which provides the full range of consulting and outsourcing services to insurance and reinsurance companies.
“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.”
Mr 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 US insurance industry. Previously trapped capital can then be used elsewhere to enhance insurer solvency, policyholder service and product innovation.
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.
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.
“We are honored to be the first company to be granted a licence 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. “We have worked closely with the Rhode Island Department of Business Regulation and greatly appreciate its assistance in the process.”
Mr 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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About Pro Global:
Pro is the trusted consultancy and service provider focused solely on the global (re)insurance industry. We deliver flexible outsourcing solutions for live and run-off business, alongside audit and operational consultancy services. Based in financial centers around the world, every major office in London, Cologne, Zurich, New York and Buenos Aires are supported by regional delivery centers. Our 30 year history has continually enabled over 130 clients to focus on their core business, whilst we deliver seamless solutions that flex to their requirements.
For more information, visit: www.pro-global.com