FOR IMMEDIATE RELEASE:
November 18, 2019
Oklahoma Leads the Country on Insurance Business Transfers
OKLAHOMA CITY – An international forum of insurance experts explained a new law that is expected to bring an economic boost to Oklahoma. The second Insurance Business Transfer (IBT) Forum was hosted by the Oklahoma Insurance Department (OID) in Tulsa on Tuesday, November 12, 2019. OID invited industry experts to explain how the law works, discuss the opportunities it can bring to the state, and promote how OID can help companies manage the IBT process.
“Oklahoma is leading the country on this innovative, new process,” Oklahoma Insurance Commissioner Glen Mulready said. “Oklahoma’s IBT law is the most expansive in the country, and I believe a conference like this will help make Oklahoma the hub for IBTs in the United States.”
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. IBTs create considerable flexibility and financial security for companies, help eliminate uncertainty, reduce administrative expenses, and simplify regulation. More importantly, 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.
“Oklahoma’s IBT law places us front and center in the global insurance marketplace,” OID’s First Deputy Commissioner and Chief of Staff Buddy Combs said. “I am proud of the work we do to ensure an efficient and transparent approval process. This will set precedent for other states and make our state the leader in insurance business transfers in the United States.” Combs also mentioned he has already received positive feedback from attendees.
“The IBT forum brought together many of the foremost experts on the IBT statutes and implications for the industry, policyholders, and regulators.” Kelly Superczynski, Head of Aon Reinsurance Solutions’ Capital Advisory team, said. “It was another great opportunity to educate stakeholders on the benefits of IBTs and discuss how this tool has been successfully utilized repeatedly in many jurisdictions around the world.”
“Last year’s IBT Forum was good, but this year was even better,” Keith Kaplan, Vice President of ProTucket Insurance Company, said. “I was honored to be included among the distinguished list of speakers. Having Rhode Island Department officials as panelists demonstrated the OID’s genuine interest in showcasing the latest information, thinking, and solutions to trending issues in the IBT space.” Rhode Island was among the first states to introduce comprehensive IBT legislation.
Although Oklahoma was not the first state to pass IBT legislation, Department officials expect Commissioner Mulready to be the first commissioner in the country to approve an IBT to proceed to district court. That approval could come as early as this week.
To see a list of the speakers from the event and their credentials, click here.
If you have questions about other insurance issues, contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.
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