Our reinsurance trust services help you meet regulatory requirements.
In structures where a producer-owned reinsurance company reinsures an insurance policy in connection with extended warranties, a reinsurer may be required by state insurance statutes and regulations to hold adequate cash and collateral in a reinsurance trust agreement. Delaware Trust Company("Delaware Trust") is a licensed trust company and has helped over 500 reinsurance companies form trusts to comply with regulatory requirements.
What are reinsurance trusts?
A reinsurance trust is a segregated trust account to report asset transactions to the primary/ceding insurer and reinsurer. Some benefits of reinsurance trusts are:
- Establish a segregated trust account to report asset transactions to the primary/ceding insurer and reinsurer
- Often cost less than letters of credit while still funding the requirements of state regulators
- Do not require annual renewal, as with letters of credit
Delaware Trust can provide:
- Trustee and custodial services for your reinsurance trust agreements
- Customizable solutions for your reinsurance program
- Regular monitoring of key provisions in your trust agreement for compliance
- Quick turnaround on trust distributions
- National Association of Insurance Commissioners approved money market funds with same-day liquidity
- Open investment architecture, allowing for structured investment portfolios managed by any investment advisor
- Competitive fees (based upon a small percentage of value of assets held in trust)
For more information on reinsurance trust services, please complete the form to the right.