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Posted in Regulatory and legislative updates, USA

US – Game changer: Oklahoma’s new insurance business transfer law could set precedent for other states

On 7 May 2018, Oklahoma Governor Mary Fallin signed into law a measure that, effective 1 November 2018, will allow an insurer or reinsurer, through a court supervised process, to transfer a portfolio of business to another insurer domiciled in Oklahoma without the affirmative consent of policyholders or insureds, becoming the first U.S. state to embrace insurance business transfers (“IBTs”) under a structure that closely mimics “Part VII” transfers authorized under the UK Financial Services and Markets Act 2000. If it gains traction, this statute could become a viable alternative structure to complex reinsurance transactions typically employed in the sale of a block of business to a third party.

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