Collateral obligations under deductible insurance policies — notably, workers’ compensation programs — can strain balance sheets, especially in times of rampant inflation and economic uncertainty. Rising interest rates, however, could present new options, including some solutions that had fallen out of favor in recent years.
Our new report looks at loss portfolio transfers (LPTs), which may become more attractive in the current environment and can allow insurance buyers to gain cost certainty, eliminate balance sheet accruals and free up credit capacity.
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