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An international forum of insurance experts meeting in Tulsa, Oklahoma, said the Insurance Business Transfer law expected to bring an economic boost to the state.
The IBT law creates a way for insurers to transfer entire blocks of business to Oklahoma based insurance companies.
The second Insurance Business Transfer (IBT) Forum was hosted by the Oklahoma Insurance Department (OID) in Tulsa on Nov. 12.
Oklahoma’s IBT law became effective in November 2018 and Oklahoma became the first U.S. state to embrace IBTs under a structure that closely mimics “Part VII” transfers authorized under the UK Financial Services and Markets Act of 2000.
At the forum industry experts explained how the law works, discussed the opportunities it can bring to the state, and promoted how OID can help companies manage the IBT process.
IBTs create considerable flexibility and financial security for companies, help eliminate uncertainty, reduce administrative expenses, and simplify regulation, according to the Oklahoma Insurance Department. An IBT can connect policyholders with a company that better understands their policy and the coverage it provides. The state’s IBT legislation applies to life, health, property and casualty liabilities, and is open to both run-off and active books of business, the OID said.
Although Oklahoma was not the first state to pass IBT legislation, department officials expect Commissioner Glen Mulready to be the first commissioner in the country to approve an IBT to proceed to district court.
Speakers at the forum included:
Source: OID