Despite the difference in spelling, London’s new Run Off Centre might be equally useful to U.S. companies involved in the run-off process as its backers hope it will be for their U.K. and European counterparts.
The Centre was developed by and uses the same technology as RI3K, the London-based on-line exchange which handles reinsurance transactions. It’s a “web-based service that has been created for all professionals involved in the run off process. It enables them to complete commutations on line, collaborate with each other, access data or legal templates and trade debts all in one place.
Kelly Fegan, General Manager of the Run Off Centre explained that the idea grew from the success of the city3k Debt Exchange.”What the Debt Exchange quickly revealed was that there is a huge, largely unacknowledged, global community in run off. They liked the idea of debt trading but wanted more. In a way, they were asking us to build a home for the industry, and they told us exactly what they wanted in it. It was a natural and necessary progression.”
The announcement described the main features of the Run Off Centre as follows: · –An industry specific global contact database
— Project based electronic document management
— Debt Market for the trading of receivables ·
— Legal Library of relevant legal precedent documents
— Automated deal maker
— Discussion Forums to gather information from industry peers
— Secure and private messaging
David McGuigan, Chairman of the Association of Run Off Companies, noted that “The number of catastrophes in the past year are having a massive impact on our extended soft market. As a result, the run off community is set to grow significantly.”
Terry Onslow, Head of Reinsurance and Pools Analysis at Equitas, Lloyd’s run off vehicle said he looked forward to exploring the possibilities of implementing the company’s commutation strategy through the Centre.
Further information can be obtained from the Centre’s website at: www.runoffcentre.com.