RUN - OFF & COMMUTATION

Run-Off and Commutation Services at Risk Exchange

At Risk Exchange, we specialize in providing comprehensive solutions for run-off and commutation, catering to the unique needs of both insurers and reinsurers. Our expertise ensures that reinsurance obligations are effectively managed and resolved, allowing our clients to focus on their core business operations.

Commutation Services

A commutation is a strategic settlement agreement between a reinsured and a reinsurer, where the reinsurer agrees to pay the present value of future obligations, effectively terminating the reinsurance contract. This process is akin to a policy buy- back and offers significant financial benefits. By receiving immediate cash, the reinsured can invest these funds to cover future claim payments, while the reinsurer is relieved from future payment obligations, leading to a full and final termination of the contract.

Our Expertise

Risk Exchange excels in handling all aspects of run-off and commutation, including:

• Portfolio Transfers: Facilitating seamless transfers of reinsurance portfolios, ensuring smooth transitions and continuity.
• Transfers of Renewal Rights: Managing the transfer of renewal rights to optimize business operations and strategic positioning.
• Run-Off and Restructuring Solutions: Crafting bespoke strategies for run- off and restructuring to maximize efficiency and compliance.

Bespoke Reinsurance Transactions

We provide tailored advice for complex reinsurance transactions, combining our deep industry knowledge with regulatory insights to support capital funding and asset transfers. Our services include:

• Advising on intricate commutation agreements to ensure optimal outcomes for both parties.
• Delivering regulatory advice to facilitate capital funding or asset transfers, ensuring full compliance with industry standards.

Why Choose Risk Exchange?

Our team of seasoned professionals brings extensive expertise in Claims, Underwriting, Systems, and Accounting, ensuring that every transaction is handled with precision and professionalism. We pride ourselves on our ability to deliver customized solutions that meet the specific needs of our clients, fostering long-term partnerships built on trust and excellence.

Discover how Risk Exchange can enhance your run-off and commutation strategies. Partner with us to achieve financial stability and operational efficiency.