AIRROC Update

Insurance & Reinsurance News

Regulatory

Making a run for it

By

This article was originally published in the Captive Insurance Times, issue number 233 and is republished here with permission. Carolyn Fahey of AIRROC and James Cameron of PwC UK discuss the current state of the run-off market, and how legacy solutions can be utilised to help insurers take advantage of the hardening market In the current environment of a hardening … [Read more...] about Making a run for it

For Now, No Need for Federal Cyber Reinsurance Backstop: Experts

By

Business owners need guidance rather than a federal reinsurance backstop to help them navigate an increasingly volatile cyber insurance market, a panel of experts said recently. “I don’t think a compelling case has been made yet for an explicit government intervention,” said Phil Edmundson, founder and CEO of Corvus Insurance, an MGA focused, in part, on providing specialty … [Read more...] about For Now, No Need for Federal Cyber Reinsurance Backstop: Experts

Federal Insurance Office Spells Out Priorities Regarding Climate-Related Financial Risks in Insurance Sector

By

On August 31, 2021, the Federal Insurance Office (“FIO”) issued a request for information regarding climate-related financial risk in the insurance sector. In the Request, the FIO laid out a conceptual framework for categorizing climate-related financial risk and its three pronged approach to implement portions of the President’s January 27, 2021 Executive Order on the Climate … [Read more...] about Federal Insurance Office Spells Out Priorities Regarding Climate-Related Financial Risks in Insurance Sector

Divided We Stand

By

American states have risen to the challenge. Faced with a decided advantage that re/insurers have to shed books of business under Part VII of the UK’s Financial Services and Markets Act, and responding to requests by US re/insurers for a similar mechanism, the American states have enacted a variety of legislative approaches to enable such transactions in the US. The two … [Read more...] about Divided We Stand

Arkansas Insurance Department Lauds New Insurance Business Transfer Law

By

 LITTLE ROCK, Ark. – Earlier this spring, Arkansas joined a handful of U.S. states in adopting the new insurance business transfer model called the Insurance Business Transfer (IBT) Act. The law provides insurance companies an organized and efficient process to transfer blocks of insurance business from any jurisdiction to another insurance company in Arkansas, benefiting … [Read more...] about Arkansas Insurance Department Lauds New Insurance Business Transfer Law

From the Front Lines

By

On February 2nd Allstate Insurance Company filed the first plans of division in the U.S. market to restructure its insurance operations representing a significant step forward for the insurance industry to expand the application of restructuring mechanisms.  The Allstate plans of division were filed with the Illinois Department of Insurance (the “Department”) pursuant to the … [Read more...] about From the Front Lines

State Regulatory Responses to the COVID-19 Pandemic: Mitigating Risk for Businesses and Individual Insureds

By

The widespread effects of the Coronavirus 19 (COVID-19) pandemic have been unlike anything the world has experienced in more than a century. Governments worldwide have been forced to grapple with this unprecedented scenario and many have implemented measures aimed not only at curtailing the spread of the virus, but also designed to aid individual insureds and businesses to … [Read more...] about State Regulatory Responses to the COVID-19 Pandemic: Mitigating Risk for Businesses and Individual Insureds

Exit Interview with NAIC President Raymond G. Farmer South Carolina Director of Insurance

By

It is a beautiful South Carolina fall afternoon, and the Director of Insurance, Ray Farmer, settles into his office to reflect on the remaining months of his term as President of the National Association of Insurance Commissioners (“NAIC”), which he had assumed on January 1, 2020.  I asked Director Farmer how the year has been, and after a long sigh and roll of his eyes, he … [Read more...] about Exit Interview with NAIC President Raymond G. Farmer South Carolina Director of Insurance

States introduce changes to promote legacy deals for insurance sector

By

Mergers and acquisitions among ongoing insurance sector companies are triggering more interest in runoff transactions to seal off old liabilities, and the trend has been boosted by legislation in various states seeking to simplify the process. Legislation passed in 2018 in Oklahoma led to the first transaction being approved in the state last year and several other states … [Read more...] about States introduce changes to promote legacy deals for insurance sector

Finality at Last. The First U.S. IBT is Complete

By

By On October 15th, 2020, the Oklahoma County District Court entered a Judgment and Order approving the first ever Insurance Business Transfer (“IBT”) in the United States.1 Much has been written and debated about the fledgling IBT process in the U.S.; concerns have been raised; perceived risks have been articulated, but now that a transaction has actually been completed, it is … [Read more...] about Finality at Last. The First U.S. IBT is Complete

Enstar Plan marks milestone proof of concept for US insurance business transfers

By

Court approval of an insurance business transfer (IBT) between two Enstar Group Limited affiliates provides a useful proof of concept for this legacy solution in the US. IBT provides insurers with an expanding regulatory toolkit alongside sale, reinsurance, and accelerated closure. So, what new doors does the first application of the Oklahoma IBT statute open and what does it … [Read more...] about Enstar Plan marks milestone proof of concept for US insurance business transfers

A New Legacy Has Been Established in the U.S. Legacy Liability Market

By

It’s in the books! Oklahoma has now made good on its promise to become the leading domicile for a new U.S.-based insurance restructuring mechanism—the Insurance Business Transfer (IBT). In late November 2019, the Oklahoma Insurance Department approved the IBT application (or IBT Plan) of Providence Washington Insurance Company (part of Enstar Group) to transfer policies to … [Read more...] about A New Legacy Has Been Established in the U.S. Legacy Liability Market

OK Court Gives Enstar’s IBT The OK

By

On October 15, 2020, the Oklahoma County District Court for the State of Oklahoma, issued its ‎Judgement and Order of Approval and Implementation of the Insurance Business Transfer Plan (“IBT ‎Plan”) (“Order”) filed by Providence Washington Insurance Company (“PWIC”), applicant and the ‎transferring insurer and Yosemite Insurance Company, the assuming insurer (“Yosemite”). This … [Read more...] about OK Court Gives Enstar’s IBT The OK

Oklahoma Completes First Insurance Business Transfer in the United States

By

OKLAHOMA CITY – Today, Oklahoma Insurance Commissioner Glen Mulready announced that the District Court of Oklahoma County approved Providence Washington Insurance Company (PWIC) to complete its Insurance Business Transfer (IBT) Plan. With this approval by the Court, the Plan will transfer substantially all the insurance and reinsurance business underwritten by PWIC to Yosemite … [Read more...] about Oklahoma Completes First Insurance Business Transfer in the United States

Mysteries Underlying Black Lung Liabilities

By

Estimating future liabilities for even the most basic line of business involves in-depth analysis of data, expert knowledge of modeling, and professional application of assumptions. Black lung liabilities take reserving to an entirely different level. Black lung compensation is rooted in a complex regulatory and legislative history. The disease itself—pneumoconiosis—involves … [Read more...] about Mysteries Underlying Black Lung Liabilities

Non-Concurrency Between Ceding Companies and Their Reinsurers for Communicable Disease Exclusions: The Next COVID-19 Shoe to Drop

By

As COVID-19 continues to change our everyday way of life, its impact on the insurance/reinsurance industry also continues to develop. The reinsurance renewal process that many insurance companies recently went through exposes yet another impending issue the insurance industry will need to confront – non-concurrency between the coverage afforded by newly issued insurance … [Read more...] about Non-Concurrency Between Ceding Companies and Their Reinsurers for Communicable Disease Exclusions: The Next COVID-19 Shoe to Drop

The NCOIL IBT Model Law – Transforming the US Insurance Industry

By

The NCOIL IBT model law provides an efficient restructuring tool that will allow companies to achieve operational and capital efficiencies to compete more effectively in the global marketplace. U.S. insurers and reinsurers now have an expanded landscape for restructuring options in the United States. On March 8th, 2020 the Executive Committee of the National Council of … [Read more...] about The NCOIL IBT Model Law – Transforming the US Insurance Industry

RSS
Twitter
LinkedIn