IronHealth, the specialty healthcare unit of Ironshore Inc., has developed the Loss Portfolio Transfer Plus Program to meet the needs of captive insurance entities and other alternative self-insurance vehicles in the Medical Professional Liability sector. LPT Plus is one of the specialty products offered within the IronHealth Custom Accounts and Asset Protection Solutions (CAAPS) facility that provides a broad array of alternative risk transfer and risk financing solutions to the healthcare industry.
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. Ironshore is 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 through Ironshore by way of insurance or reinsurance – to its members on a first-year-claims-made basis.”
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