Pro Global’s Managing Director, Mory Katz, has said the new amendments to Rhode Island’s run-off Bill designed to make run-off transactions easier to execute, “has the potential to ignite economic development and bring hundreds of millions in capital,” to the State.
The amendments to Rhode Island’s Voluntary Restructuring of Solvent Insurers Law and Protected Cell Companies Act will allow re/insurers to cede run-off commercial books with court-sanctioned finality and, according to Katz, “Strengthen the existing regulation by reducing potential ambiguities in how the law is applied.”
It’s claimed this move will open the door to a $100 billion market in U.S. transactions via books of legacy business.
Pro Global had previously testified in front of a House Committee to highlight the Bill’s potential value to the industry, citing improved efficiency of business and increased job creation across the state.
Subsequently, House Bill 8163 was passed unanimously, 70-0, and is currently on its way to Governor Gina Raimondo for signature – which when signed, will come into immediate effect.
Pro Global were joined in its support of the Bill by the Rhode Island Department of Business Regulation (Insurance Division), the Property Casualty Insurers Association (PCI), and law firm Locke Lord.
“I’d like to thank Superintendent of Insurance, Elizabeth Dwyer, and everyone who worked so diligently to get these amendments passed,” said Katz. “There will be job creation for all sorts of insurance professionals – actuaries, accountants and lawyers.”
“This establishes Rhode Island as a center of excellence for the U.S. run-off sector. Rhode Island is being talked about at conferences all over the country and dozens of large insurers have waited for these changes to be enacted.”
“The changes to the legislation allow not only Rhode Island to be a leader in the market, but also positions Pro Global, via its ProTucket entity, to take a lead position in this potentially lucrative market,” added Katz.
“The amendments to the Voluntary Restructuring of Solvent Insurers Law and Protected Cell Companies Act show there is a real willingness in government, not just business, to make the law work. There is a consensus that it’s good for the industry and good for the State.”