Runoff Liability transfer

Aged insurance or reinsurance liability can be transferred to another carrier in a variety of ways. Our goal is to understand the needs of our client, explain the mechanisms available to achieve those needs and then work with them to execute a satisfactory result.



A company that is in the business of making tires, drilling for oil or managing real estate is not in the business of running an insurance company. However, the multitude of benefits for owning their own insurance company are undeniable. Our job is to provide these companies with objective advice on the variety of statutory forms their captive insurance company can assume. We then work with them to contract those specialty companies who can fulfill and manage their captive.



To ensure that their reinsurance asset is fully realized, an insurer must collect their amounts recoverable as quickly as possible. When those reinsurance contracts are placed around the world with hundreds of companies, it is sometimes most practical to outsource the job of collections to a third party. When a cedent decides it most prudent to contain their exposure to possible future collections, they should consider a commutation protocol. To do so may be accomplished by a third party like Apetrop.



Given the inherent nature of being once, twice or three times removed from the original risk, reinsurers must perform their due diligence on new or renewal business and evaluate whether ensuing liabilities are being handled in the way they were initially intended. Given the worldwide nature of reinsurance placement, it is often difficult for companies to carry out these functions efficiently and cost-effectively.