Can an organization offload a long-term workers’ compensation claim?
Usually the more precise objective is to transfer or replace eligible future indemnity-payment administration. The entire claim may not close, and medical can remain open.
Frequently asked questions
Straight answers about long-tail workers’ compensation liability transfer.
The terminology matters. These answers distinguish the indemnity-payment strategy from full claim closure, medical administration and claimant settlement.
Does medical have to close?
No. A strategy may address scheduled indemnity benefits while the responsible organization continues to administer open medical and any obligations outside the arrangement.
Is this a claimant settlement?
The program is designed as administrative benefit replacement rather than a negotiated claimant settlement, subject to applicable law and documentation.
Can it reduce reserves?
It may reduce the covered indemnity reserve depending on transaction structure and the organization’s accounting and actuarial treatment. Each client should obtain its own professional guidance.
Which claims are candidates?
Stable, measurable PTD, wage-loss, wage-differential and death-benefit streams are common starting points. Jurisdiction and contingencies must be reviewed.
Who makes the payments?
The benefit stream is funded through a highly rated life insurance company selected for the transaction. Guarantees depend on that insurer’s claims-paying ability.
What information is needed first?
A de-identified summary of jurisdiction, benefit type, amount, frequency, contingencies and reserve basis is sufficient for an initial review.
Start with one de-identified file