Liquidity: The ability to convert an asset into cash
Traditionally, the only option available to policyholders seeking liquidity from their historical insurance coverage was to negotiate commutations or full policy buybacks with their insurer's, often on disadvantageous terms or at steep discounts to fair value... if a deal could be struck at all.
GRC focuses on understanding and valuing the impact of not just paid losses but also the potential impact that pending or IBNR losses can have on the coverage in question. As a result, we can provide Liquidity for a policyholder's historical insurance coverage at prices that more fully reflect the true intrinsic value of the insurance asset—often far in excess of what could be obtained from a commutation or buyback with an insurer.
