LPT Plus is designed to help alternative risk financing vehicles, such as captive insurers or risk retention groups, in two ways. First, the program allows the vehicle to transfer liabilities off its balance sheet, thereby enabling it to liquidate reserve redundancies and monetize those funds for dividend distribution to its insured beneficiaries. IronHealth will assume the insurance entity’s liability for known and reported claims, as well as incurred but not reported (or “tail”) liabilities, and has the flexibility to structure loss portfolio transactions to meet the specific needs of the client.
Second, LPT Plus provides the vehicle with the option of having Ironshore write the going forward business on a first-year claims-made basis.
“In today’s medical professional liability sector, many alternative risk entities are over-reserved and would like to find a way to monetize those excess reserves and distribute them to their participating insureds in the form of dividends,” said Joshua Stein, Chief Underwriting Officer of IronHealth.
“In addition, given the extremely competitive pricing environment for Medical Professional Liability, these entities may be concerned about retaining their members. IronHealth’s LPT Plus program offers an innovative insurance solution with the flexibility to address both of these issues. We are able to structure the transfer of old liabilities – both known and reported claims as well as “tail” liabilities – off the captive’s balance sheet, thereby freeing up excess reserves, and allowing the captive to offer extremely attractive pricing – either itself, or throug Ironshore by way of insurance or reinsurance – to its members on a first-year-claimsmade basis.”