Pro Global Insurance Solutions has become first company to file an application for a new domestic insurance company in Rhode Island to facilitate insurance business transfer under the recent amendment to the state’s Regulation 68.
Regulation 68 was amended in August last year to allow for the transfer of portfolios of business into a Rhode Island protected cell company.
The recently amended regulation balances stakeholder interests and meets demand in the US insurance market for run-off, according Pro Global, which frees trapped capital, management and administrative resources.
The update last year provides a process to separate run-off portfolios and place them into separate protected cells within a single Rhode Island domestic insurer that assumes the risk of the run-off portfolio by means of a statutory novation.
Pro Global is the first apply to form a Rhode Island carrier specifically to accept run-off portfolios. The entity will be known as ProTucket.
Mory Katz, US managing director of Pro Global, said: “We have worked closely with the regulator as they have ushered in this ground-breaking regulation and we are the first to file for a new carrier. Pro’s Rhode Island 68 carrier, ‘ProTucket’, will continue our growth in the US and establish us as a major player in legacy services in the US, as we are in the UK.”
