In this article in the Cayman Focus 2025 issue of Captive Review, John West, Senior Vice President, Legacy Solutions and Captive Segment, writes about how Loss Portfolio Transfers (LPTs) and Adverse Development Covers (ADCs) have emerged as highly effective tools to help captives in the Caymans and elsewhere to mitigate legacy as well as future risk. Both structures are increasingly being used not only to stabilize balance sheets but also to support strategic transitions, such as restructuring, mergers or expanding into new lines.
In addition to these solutions, medical liability reform and controlling or limiting litigation financing are imperative. The American Medical Association is pursuing legislative solutions at both the federal and state levels to address the problems with the current medical liability system and is actively collaborating with state medical associations and national medical specialty societies to advance these goals as well.