When your large healthcare organization has sizable losses it wishes to cede, a loss portfolio transfer reinsurance treaty may be your best solution. Common reasons for this choice include exiting a line of business, changing an insurance approach, or simply preferring to transfer risk.
Perhaps the most helpful feature of a loss portfolio transfer is the ability to move liabilities from your balance sheet. You cede existing, open claims liabilities—as well as those that will be incurred from that risk in the future—along with reserves. In addition, your team is freed from managing the day-to-day claims requirements.