Benefits
strategy | innovation | expertiseUnderwriting Profit
If a business which has had historically low losses over a number of years is placed into the R&Q Quest program the underwriting profit accumulated offshore goes directly to the program participant, not to a commercial carrier.
Investment Income
An added bonus is the investment income which the participant can earn in a RAC Program that stems from the time delay on the payment of losses. For example, a liability loss incurred in a specific year may actually be paid over a five to ten year period or even longer. During this time the premiums, now in the form of loss reserves, remain available for investment and the program participant, not the commercial carrier, will be entitled to the investment income derived.
Additionally, the investment policy is at the direction of the program participant.