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Daily Insurance Industry News
Tuesday 17th of July 2018
May 31, 2012

XL accepts Collateral Trusts for captive insurance programmes

by Gill Montia

Story link: XL accepts Collateral Trusts for captive insurance programmes

XL has announced that it is now accepting Collateral Trusts in lieu of Letters of Credit used as collateral for corporate deductible and captive insurance programmes in the UK.

According to the re / insurer, Letters of Credit (the traditional method of providing collateral for corporate deductible and captive insurance programmes) are often expensive to maintain, cumbersome to administer, and are treated as contingent liabilities on the customer’s balance sheet.

The group says it is recognising the need of many of its clients to seek alternatives and has appointed Wells Fargo Bank as preferred provider of the new service.

 

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