PARTICIPANTS
Participants
IAC™ Insurers conduct their business in Bermuda, subject to the stringent requirements of the
Investors Guaranty Fund, Ltd. (Policyholder Reserves) Act, 1991
(the “IGF Act”),
aided by a global network of insurance, capital markets, banking and administrative professionals.
This internationally patented structure was designed to provide the highest assurance of timely payment to policyholders and enable global capital markets investors to participate in risk and return generated from insurance linked activities. Certain legal aspects of the technology platform which services the IAC™ Insurers and administrative participants are regulated by the Minister of Finance and Registrar of Companies of Bermuda and the Bermuda Monetary Authority. Operations focus on a) policy activities, the form through which IAC™ Insurers accept risk, b) capital support, which involves matching capital/surplus from discrete capital participants in conjunction with premiums, policy collateral and/or internal surplus to assure the IAC™ Insurers’ ability to meet statutory requirements requiring an IAC Insurer™ to be capable of fully paying the maximum of all policy limits, c) transactional participant activities, involving insurance and capital markets professionals coordinating transactional activities with the IAC™ Insurers, and d) administrative functions, undertaken through IAC™ Insurers’ management team, affiliated administrative services companies and third party support professionals.
Our vision is one of a multi-insurer platform supported through an expanding number of global insurance, asset, capital markets and administrative professionals, designed to provide an ever-increasing amount of insurance capacity, capital support and technical expertise.
Participants – Principal Clients
Policyholders
Enterprises
IAC™ Insurers focus on providing insurance and financial guaranty insurance capacity to enterprises, globally. Supporting an enterprise’s unique risk transfer needs, developing a risk transfer program for similar enterprises or providing industry specific risk-linked investment products are activities aided by the unique structure of the IAC™ Insurers.
[Re] Insurers
IAC™ Insurers complement traditional loss portfolio transfers, reinsurance, retrocession and other forms of insurance and reinsurance company capacity support, transfer and diversification activities.
Special Purpose Reinsurance Series (“SPRS”)
Utilising IAC™ Insurers through the SPRS structure can increase parent [re]insurer capital and surplus, expand reinsurance capacity and enable the parent [re]insurer to have a means to transfer and accept reinsurance globally.
Special Purpose Investment Facilities
Through the use of special purpose investment facilities, IAC™ Insurers are able to participate in and facilitate the objectives of insurance and capital market participants, through transactional structures which utilise convergence of insurance and capital markets.
Capital Providers
Special Purpose Capital Facilities
IAC™ Insurers coordinate through accredited capital facilities and various forms of digital assets. Participants acquire interests in bespoke series and debt and equity securities which indirectly participate in risk-linked transactions conducted across the IAC™ Insurers.
Investors Guaranty Assurance Type (“IGA”) Capital Funding
In some transactions, capital may be provided for IAC™ Insurers’ transactions through IGA Type IAC™ Insurers.
Participants – Policy|Risk Professionals
IAC™ Insurance Intermediaries
IAC™ Insurers will only accept submissions for policy issuance through accredited IAC™ Insurance Intermediaries, who are licensed and regulated in Bermuda. Policy submissions are placed through an electronic system. Accredited IAC™ Insurance Intermediaries may specify to which IAC™ Underwriting Advisor(s) such submission will be presented. IAC™ Insurance Intermediaries receive a percentage of premium as compensation for their services, generally netted from premium. While IAC™ Insurance Intermediaries must abide by certain business conduct standards and the IAC™ Rules & Regulations to maintain their accreditation, they are independent parties and are not agents or contracted service professionals to IAC™ Insurers. IAC™ Insurance Intermediaries may maintain certain technology and infrastructure services agreements with parties who provide similar services to IAC™ Insurers.
IAC™ Insurance Brokers
Insurance brokers from across the globe may access IAC™ Insurers on behalf of their clients, but only through one or more accredited IAC™ Insurance Intermediaries. Such party shall have undertaken applicable “know your client” procedures and accredited the insurance broker as meeting the qualification to do business with the IAC™ Insurance Intermediary. To maintain its accreditation, the IAC™ Insurance Broker must agree to abide by the IAC™ Rules & Regulations. IAC™ Insurance Brokers may receive a percentage of premium, a flat fee, or other terms of compensation for their services, from the IAC™ Insurance Intermediary, or netted by the policyholder. The IAC™ Insurance Broker is not generally affiliated with the IAC™ Insurance Intermediary and will generally be an independent party or provide services on behalf of a prospective policyholder. IAC™ Insurance Brokers may be accredited to engage with one or more IAC™ Insurance Intermediaries.
IAC™ Underwriters
Each IAC™ Underwriter is accredited to provide underwriting services to one or more IAC™ Insurers. Upon receipt from an IAC™ Insurance Intermediary of a Request For Policy or Purchase Offer, the IAC™ Underwriter reviews the proposed transaction which has been developed with the assistance of an IAC™ Underwriting Advisor, the applicable capital/surplus profile and determines if it meets the applicable IAC Insurer™’s guidelines for issuance. Generally, the IAC™ Underwriter will have the “pen”, the authority to bind the IAC Insurer™. IAC™ Underwriters receive a portion of policy issuance fees, periodic policy surveillance fees and may receive a participation in the net underwriting income related to each transaction in which the IAC™ Underwriter provided underwriting services. IAC™ Underwriters must abide by certain business conduct standards and the IAC™ Rules & Regulations to maintain their accreditation. They are independent parties, must be resident in and compliant with applicable regulations in Bermuda. Further, they are subject to contractual agreements related to applicable IAC™ Insurers. IAC™ Underwriters also maintain certain technology and infrastructure services agreements with parties who provide similar services to IAC™ Insurers.
IAC™ Underwriting Advisors
Each IAC™ Underwriting Advisor shall be accredited to provide transaction support services, including development of coverage and premium terms, participation in structuring of capital/surplus support related to applicable transaction(s) and/or activities in areas of administration, capital allocation, risk analytics and compliance. IAC™ Underwriting Advisors may receive fees on commencement of a transaction, periodically during its life, and on completion of a transaction. In some instances, an IAC™ Underwriting Advisor may participate in net underwriting income or residual benefit related to a transaction. IAC™ Underwriting Advisors must abide by certain business conduct standards and IAC™ Rules & Regulations to maintain their accreditation. They are independent parties. IAC™ Underwriting Advisors also maintain certain technology and infrastructure services agreements with parties who provide similar services to IAC™ Insurers.
Participants – Assets|Capital Professionals
IAC™ Insurers operate their Investment and Capital Support Activities in conjunction with syndicate advisors, capital allocation advisors, asset managers and securities professionals in the analysis and development of capital/surplus support for IAC™ Insurer liability/asset matching activities, as well as certain risk analytics, compliance, investment and performance analysis functions.
Government obligations supporting an IAC Insurer™’s Policies and certain treasury functions shall be administered in conjunction with Investors Guaranty Fund, Ltd. (“IGF”). Other classes of assets shall be administered and managed through investment professionals including syndicate advisors, capital allocation advisors, investment managers, and portfolio sub-advisors, through special investment facilities and sub-advisory agreements in compliance with IAC™ Rules & Regulations. These parties must meet certain accreditation standards and be accessible through the IAC™ network.
IAC™ Asset Administration
IAC™ Capital Allocation Advisors – are responsible for allocation of capital|surplus and certain Reserve assets within an IAC Insurer™ to support Policy issuance and investment activities. Surplus funds shall be invested through special purpose fund structures, professionally managed according to pre-agreed asset management guidelines. IAC™ Capital Allocation Advisors receive periodic fees generally consistent with investment management industry practice. IAC™ Capital Allocation Advisors must abide by certain business conduct standards and IAC™ Rules & Regulations to maintain their accreditation. They are independent parties and may maintain certain technology and infrastructure services agreements with parties who provide similar services to IAC™ Insurers.
IAC™ Syndicate Advisors– provide capital|surplus allocation services related to one or more “syndicates”, subject to pre-agreed guidelines. A “syndicate” may be specific to an IAC™ Insurer, who may have a number of “syndicates” for varying types of risk exposures. An IAC™ Syndicate Advisor may advise on more than one “syndicate”, and such “syndicates” may facilitate activities with more than one IAC Insurer™. IAC™ Syndicate Advisors receive periodic fees generally consistent with asset management industry practice. IAC™ Syndicate Advisors must abide by certain business conduct standards and IAC™ Rules & Regulations to maintain their accreditation. They are independent parties and may maintain certain technology and infrastructure services agreements with parties who provide similar services to IAC™ Insurers.
IAC™ Consulting Advisors
Each accredited IAC™ Consulting Advisor provides certain administrative, asset, risk analytics and or compliance services related to specific policy transactions. The IAC™ Consulting Advisor may also design Program|Policy protocols for specific prospective clients and/or in creating industry solutions. IAC™ Consulting Advisors may receive fees on commencement of a transaction, periodically during its life, and on completion of a transaction. IAC™ Consulting Advisors must abide by certain business conduct standards and IAC™ Rules & Regulations to maintain their accreditation. They are independent parties and may maintain certain technology and infrastructure services agreements with parties who provide similar services to IAC™ Insurers.
IAC™ Securities Firms
In the issuance of risk-linked financial instruments, IAC™ Insurers may engage the services of securities or financial advisory firms. In some instances these services may be provided to investment funds, conduit issuers or other forms of securities issuers. Fees and services are generally of a traditional nature. IAC™ Securities Firms must abide by certain business conduct standards and IAC™ Rules & Regulations to maintain their accreditation. They are independent parties and there contractual terms vary from country to country and type of services being provided. In some instances, IAC™ Securities Firms may maintain certain technology and infrastructure services agreements with parties who provide similar services to IAC™ Insurers.
Participants – Administrative
An IAC Insurer™ operates its Policy & Capital Support Activities through the Board of Directors, Executive Directorate, Officers and with the assistance of a professional insurance manager, a statutorily required Principal Representative, and a host of insurance, capital markets and administrative professionals, including …
Custodians
Under the IGF Act, each IAC Insurer™ is required to maintain its “reserve” assets with government approved custodian(s), under terms agreed with the Government of Bermuda. The terms of custody have been in place for over thirty years and are the result of extensive negotiations with rating agencies, custodians and government. Fees and terms are consistent with industry practices.
Administrators
IAC™ Insurers directly and indirectly through various asset holding structures utilise services of asset administrators and other administrative service entities. Fees and terms are consistent with industry practice.
Actuaries
As regulated Bermuda insurance companies, certain actuarial requirements and standard practice involve use of insurance actuaries. Services, terms of trade and fees are generally industry practice.
Accountants
In addition to providing auditing and accounting services, the IGF Act, agreements with custodians and IAC Insurer™ procedures, require changes in policy liabilities and assets supporting policy obligations must be periodically and on transaction events certified as to sufficiency and compliance. Fees and terms are consistent with industry practice.
Legal Counsels
In addition to general legal counsel provided directly to IAC™ Insurers and through its service affiliates, transactions from time to time involve specialised transactional legal counsel. Fees and terms are consistent with industry practice.
Rating Agencies
Policy issuance may involve a private rating being applied by one or more internationally recognised statistical rating agency(ies). The IGF Act provides for certain requirements related to rating agencies. Fees and terms are consistent with industry practice.
Valuation Experts
Directly or indirectly through asset holding structures, or in relation to certain internal “statutory reserve” allocations, from time to time valuation experts are engaged. Fees and terms are consistent with industry practice.
Claims Specialists
Some transaction types require the services of claims specialists and paying agents. Services, fees and terms are consistent with industry practice.
Consultants
IAC™ Insurers, affiliated service companies and entities through which assets are held often engage consultants with specialised expertise. Fees and terms are generally consistent with industry practice.
