The Disability Reinsurance Facility provides product and services for insurers who need financial protection from claim severity or that want to provide Long Term Disability products to their customers, but lack the resources to support those products. DRF recognizes that client companies have varying needs and the facility will be flexible in its efforts to support those needs. The following products and services are offered by DRF: 

Turnkey Service and Reinsurance

Insurance carriers may want to offer LTD products to their customers, but lack the resources or expertise to support those products. DRF can provide these carriers with products, services, and automatic reinsurance which will allow them to enter the LTD market. DRF will provide full service for insurers with no resources or ancillary services where the insurer can offer some services on its own behalf.

For example, an insurer may have a claim department which can adjudicate LTD claims. However, the carrier may need advice and consultation on questionable claims or where there is a potential for rehabilitation of a claimant. DRF will also provide independent audits and reviews of underwriting and claim functions.

For insurers that want to enter the product line but have limited resources to support it, DRF will provide full services. These include providing rates, underwriting support, contract development, filing support, claim services, actuarial services and all other services the insurer will require.

Disability Reserve Buyouts

Reserve Buyout proposals for an existing book of claims can be provided to self-insured employers and insurers who wish to place the risk and the management of claims with HRMP-DRF. Our leading edge disability management capability allows us to value reserve liability on a realistic basis. This frequently results in immediate financial gains to employers and insurers who pursue reserve buyouts with us.

Quota Share Reinsurance

Automatic Quota Share Reinsurance treaties are available to companies with established LTD portfolios that want to limit their exposure on the entire portfolio. Such reinsurance arrangements are appropriate when the amount of surplus which can be allocated to this line of business is a concern, but the insurer is otherwise comfortable with the risk associated with the product line.

Facultative Reinsurance

Facultative Reinsurance arrangements can be provided when risk selection falls outside the normal underwriting rules of the insurer, but the particular customer is attractive after evaluating all aspects of the risk. Facultative reinsurance is also appropriate in situations where the insurer does not have the capacity to allocate sufficient surplus to the risk due to its size.

In addition, DRF works with client companies to support unusual risk situations.

For more information, please contact Bill Jeffery, Managing Director.