Insurance industry players face a myriad of legal, regulatory and business challenges, especially given the sector’s complexity and rapid evolution. To successfully tackle these challenges, you need legal advisors who understand the market—where it’s been and where it’s going—and have front-line experience advising on a broad range of legal issues unique to insurance.
Our Insurance team leans on decades of experience to provide unmatched advice across a broad range of transactional and regulatory matters and dispute resolution. Because we’ve “seen it all,” we often act as industry consultants: We help clients develop groundbreaking insurance and reinsurance products, leverage private equity and venture capital opportunities, structure acquisitions for optimal tax benefits and defend against “bet the company” claims, disputes and multi-state regulatory investigations and enforcement proceedings. Our cross-border team of more than 40 lawyers includes practitioners from multiple practice areas—Transactions, Regulatory, Litigation, Tax and Privacy—delivering seamless, one-stop shop advice, no matter where you do business.
The rapid convergence of technology and insurance has created unprecedented opportunities and challenges for stakeholders. Whether your organization is an InsurTech startup or an industry incumbent, our efficient, business-minded lawyers draw on a sophisticated understanding of the market to arm you with the regulatory, corporate and tax advice necessary to achieve your business goals.
When you are partnering with a technology company, spinning off and marketing a company as a separate business, or buying and selling distressed assets, you can turn to us for full-service M&A support around the clock. You benefit from our connections with well-known corporate insurer-backed venture capital (VC) arms and leading InsurTech VC-focused teams, along with our strong relationships across the regulator community. Our cross-border team is seasoned in the core issues that crop up frequently in tech deals, including fast-tracking high-stakes, multi-state insurance regulatory system approvals, implementing privacy and cybersecurity safeguards, and navigating big data ownership, social media and intellectual property issues. As strategic advisors and innovative, solutions-oriented dealmakers across an international client base, we are your go-to team for tackling the gamut of matters tied to restructuring, distressed special situations, assumption and liability, and loss portfolio transactions. We are also a mentor and sponsor of the Israeli InsurTech Accelerator (IIA) program, which is designed to foster innovation in the insurance industry by supporting start-ups targeting the global insurance industry.
Captive Insurer & Risk Retention Group Formation, Governance & Taxation
We know your business needs are unique and require custom solutions. Our award-winning captive lawyers are true innovators in the structuring of alternative risk transfer mechanisms for all types of captives and risk retention groups in US and offshore jurisdictions, including Barbados, Bermuda, the British Virgin Islands and the Cayman Islands, among many others. We blaze new trails not only in the development and structuring of creative risk retention and transfer solutions, but also in the operation of efficient risk-management programs that fuel business performance by aligning economic incentives with loss minimization to lower the cost of risk. We were there as our clients formed the first healthcare captives. Our market-leading tax lawyers are thoroughly versed in the federal and state tax issues that captive insurers and risk retention groups face, and offer practical and effective tax controversy services to clients whose captive arrangements are challenged by the Internal Revenue Service.
We also collaborate with clients on the structure and operation of alternative risk financing mechanisms across diverse geographies and formats. Leveraging our extensive knowledge of stock, mutual and reciprocal formats, we combine our insurance, regulatory, federal and state tax, securities and litigation experience to optimize program structure and achieve tax-efficient and regulatory-compliant results. We handle loss portfolio transfers, novations and reinsurance of all sorts, as well as derivatives and structured reinsurance arrangements that allow capital market participants to take on risk.
Class Action Defense
Class action lawyers have become more sophisticated and aggressive in bringing national class actions against insurers. Our dedicated class action team defends health insurers in class actions brought by plan participants and providers. We also have extensive experience defending class action claims asserted under the Employee Retirement Income Security Act (ERISA) and offer clients the benefit of our intricate familiarity with this complicated area of law.
Working closely with our top-ranked health practice, we have our finger on the pulse of the ever-shifting relationships among health plans, participants and providers. Even as payment and reimbursement structures transform—under ERISA, administration changes and other regulatory initiatives—our class action defense lawyers help you stay ahead of the curve to mitigate evolving risks.
Federal, State and Local Taxation of Insurers & Reinsurers
Commercial and captive insurance and reinsurance companies must grapple with complex federal, state and local tax treatment. Our premier tax team offers thought leadership in the wake of the Tax Cuts and Jobs Act of 2017, which amended or repealed a number of insurance tax provisions. Our tax team also provides innovative, actionable tax planning and tax audit counsel, and represents clients in Internal Revenue Service administrative proceedings and before federal and state courts. We also advise insurance companies on applicable state taxes, including premium tax issues. We partner closely with captive insurers to navigate their complex state tax obligations, particularly in relation to the Nonadmitted and Reinsurance Reform Act of 2010.
Insurers in today’s healthcare market face unprecedented—and ongoing—disruption and transformation. As the top-ranked healthcare law firm in the United States, we possess robust experience in the health insurance sector.
Our lawyers have been at the forefront of efforts to create, restructure and advise on the full spectrum of issues related to managed care arrangements around the globe. We structure, draft and negotiate complex managed care contracts and arrangements with payors and providers, including cutting-edge commercial, Medicare Advantage, Medi-Cal, point-of-service, narrow network and other risk contracts, as well as bundled payments and a range of value-based contracts.
On the regulatory front, we assist health insurers in navigating regulatory compliance challenges, government investigations, government strategies and litigation arising out of their participation in government programs, including Medicare Advantage and Medicaid managed care, as well as requirements for participants in the Health Insurance Exchanges. We also assist health insurers with a broad array of issues facing their business, including compliance with healthcare laws related to patient privacy and security; implementation of cutting-edge technology solutions; and acquisition, operation and integration of their operations with those of healthcare providers.
Our lawyers successfully license and obtain change-of-control and other Knox-Keene license material modification approvals for full-service, specialized and restricted Knox-Keene Plans, including the negotiation of complex undertakings, and handle major enforcement, for-profit conversion, solvency and other compliance matters. We also have extensive experience advising on investments in UK healthcare and contracting with the NHS on health regulatory matters, including digital health, medtech, health IT, payment and structuring.
Insurance Coverage Litigation & Counseling
Our nimble, highly collaborative insurance litigation team represents commercial and captive insurers, risk retention groups and reinsurers in some of the United States’ most high-profile and contentious disputes. Drawing on decades of experience, we are always ready to roll up our sleeves and develop innovative solutions in your best interests, whether it’s strategic multiyear litigation or a timely settlement to save costs. Our team is top-ranked in numerous directories and received the Financial Times’s prestigious “Innovative Lawyers” award for its historic settlement of 10,116 In re World Trade Center Disaster Site Litigation cases against the City of New York and 140 of the City’s contractors brought by first responders, union workers, volunteers and others who participated in the rescue, recovery and debris removal operations at the former World Trade Center site on and after 9/11.
Our insurance coverage team crafted the largest settlement of Roman Catholic clergy abuse cases in the United States for longtime client Allianz; represented the liquidators of General Electric’s captive with respect to a $4 billion environmental claim involving sites in almost all 50 US states; recovered $228 million for a captive after winning summary judgment in its contribution action against certain London market insurers; and has handled many nine-figure disputes as first-chair trial and appellate counsel throughout the United States. Working with a New York-based insurer, we also created and help to administer the National Hockey League’s league-wide temporary total disability insurance program.
Transactions and Private Equity
We stand ready to partner with you in negotiating and executing all types of insurance and reinsurance-related deals to further your business objectives. Our insurance lawyers work closely with the Firm’s transactions and private equity teams to conduct insurance due diligence and planning. We also negotiate, help place on the market, and handle claims and disputes arising from transactional insurance products, such as representations and warranties (R&W) insurance and tax liability insurance. We have handled dozens of recent deals in the R&W space and have a keen understanding of what policy terms to request upon placement to best protect our clients and to minimize, resolve and win disputes. We have served as insurance counsel for several tax liability policies with the highest limits ever placed in the United States, often with policy limits exceeding $500 million in a single placement.
"The group is superior in its knowledge and ability to represent business clients zealously and intelligently."
"an excellent team and strong firm across many disciplines."
Represented a property and casualty insurance firm with eight subsidiary businesses and almost 400 professionals, in its sale to a subsidiary of a Chicago-based financial technology business
Represented an investment banking company on the insurance transactional and regulatory aspects of an insurance company’s $3.4 billion capital raise with a $3 billion senior preferred stock transaction and a $454 million junior preferred investment by a separate consortium
Represented an international specialty insurer and reinsurer on its investment in and partnership with a Texas-based specialty (re)insurance intermediary and alternative asset advisory firm, an investment in insurance technology company, as well as its formation of and investment in an insurance underwriting company
Represented a full-service insurance program administrator offering workers compensation, commercial lines and specialty property programs nationwide, with deep expertise in the California workers compensation market, in the sale of its business to an insurance company
Represented the aviation industry’s leading source of general aviation insurance products and services, in the sale of its business to a US-based subsidiary one of the world’s largest providers of property and casualty insurance and reinsurance
Represented a leading franchisor of non-standard auto insurance brokerages catering to the US Spanish speaking community, and its portfolio company, in the acquisition of a Texas-based independent insurance agency
Represented a New Jersey-based specialty insurance underwriter, producer and third-party administrator, in the sale of its stock to a subsidiary of a leading national brokerage company
Represented a leading national insurance brokerage firm, in the marketing and sale of Medicare supplement health insurance policies to a business outsourcing company owned by private equity funds affiliated with Blackstone Group, LP
Represented a health insurance technology company and leading distributor of Medicare-related health insurance plans, as special regulatory counsel in its entering into a definitive agreement to be acquired by funds affiliated with private equity firm specializing in leveraged buyouts of privately held or publicly traded companies
Represented a risk management firm in its sale to one of the world’s largest private insurance brokerage firms
Represented a British multinational professional services firm that sells a range of financial risk-mitigation products
as special tax counsel, in its $30 billion merger with a leading global advisory, broking and solutions company
as special regulatory counsel, in the acquisition of a leading digital insurance platform for small and medium-sized businesses
as special regulatory counsel, in the sale of its technology-enabled benefits and cloud-based HR service platform for roughly $4.8 billion
Represented an insurance intermediary and program management firm in its sale of an international claims, audit and risk management advisory firm
Represented a specialty insurance intermediary, program management and risk advisory services business, in its acquisition by a national retail insurance brokerage and employee benefits consulting firm
Represented the leading provider of loyalty enhancements for customers of banks and credit card issuers, as special regulatory counsel, in the sale of a provider of marketing and insurance administration expertise to financial institutions to an affiliate of a private equity firm focused on control investments in lower middle-market companies in North America
Represented a private equity management firm in its acquisition of a national provider of specialty pharmacy, pharmacy management, pharmacy benefits management and third party administrator services
Represented a Swiss family office, in its Series B investment in a digital insurance producer that empowers people to buy home and auto insurance hassle free on their smartphones, tablets or computers in minutes
Served as lead investor in a Series B funding of a digital financial services company serving the emerging middle class and providers to the gig economy
Represented a global reinsurer on its strategic insurance partnership and investment in insurance technology company
Represented a financial services company in its acquisition of a usage-based insurance (UBI) business; the deal remains subject to customary regulatory approvals
Represented a leading digital insurance agency for small businesses in the sale of its business to one of the leading digital InsurTech companies transforming small business insurance
Represented an insurance-focused digital wallet company on product and regulatory analyses
Represented a digital insurance platform in all aspects of the launch of its US digital MGA platform
Represented a digital Medicare advantage agency, in various transactional and regulatory matters
Represented a New-York based private equity firm, as lead investor in the Series C financing round for an InsurTech company whose nationally available products integrate the procurement of homeowner’s insurance directly into the home-buying process
Represented a Silicon Valley Bank-backed start-up focused on insurance for emerging companies, in all aspects of its launch in multiple states
Represented a leading homeowner’s insurance and connected home MGA on various regulatory, data privacy, IT, e-commerce and transactional matters
Represented a cyber insurance MGA, in various transactional, employment and regulatory matters
Represented an online life insurance company providing term life insurance based on lifestyle and needs, in various agency agreements and other transactions, employment, regulatory, data privacy and cyber security matters
Represented an online travel company that operates a website and mobile app with user-generated content, in an agreement to offer travel protection products throughout the US
Represented various API, SaaS and other tech start-ups in transactions with re/insurers, intermediaries and others
Represented multiple clients on premium refunds and payment grace periods, cancellation moratoria, business interruption coverage, and business planning related to the COVID-19 pandemic
Represented a non-profit travel insurance organization as national counsel for the enactment of the NAIC/NCOIL Travel Insurance Model Act and various matters related to the regulation of travel insurance
Represented a global re/insurer and its affiliated MGA on a digital retail shipment tracking platform and related insurance products
Represented a digital health, primary care provider in responding an inquiry from the New York Department of Financial Services regarding licensing requirements
Advised multiple insurers and producers on issues relating to insuring lawful cannabis-related businesses
Represented a Korean re/insurer in establishing a presence in the US through a fronting arrangement and service company
Represented various insurers in a multi-state investigation involving insurance programs offered to members of the National Rifle Association
Represented a global insurance broker in various regulatory investigations, including pension risk transfer transactions, travel insurance claim handling, and placement of certain unique risks in the New York excess line market
Represented a global insurance broker in a multi-state investigation of the travel insurance industry through the NAIC
Represented a life insurance company in a 50-state branding and name change project and establishing a Delaware life and disability insurance portability trust
Counseled various start-ups and established insurers and producers on InsurTech matters, including partnerships with digital retailers and other unlicensed persons
Represented various insurers in a multi-state federal credit union life insurance product investigation
Represented various insurers and brokers in structuring insurance and ancillary benefit programs for affinity and other groups and associations, including motor clubs, vehicle and other warranty and service contract programs
Advised various re/insurers and brokers on cross-border transactions in the London, European and Bermuda markets and related “doing business,” reinsurance collateral and tax issues
Advised a life insurer on various aspects of its international business platform
Capital Markets & Securities
Represented a full-service reinsurance intermediary company as underwriters counsel in its purchase of $210 million aggregate principal amount Series 2020-1 Class A Principal-At-Risk Variable Rate Notes due January 8, 2024 issued by 2001 CAT Re, Ltd
Represented an insurance company selling California earthquake insurance policies as special counsel in its catastrophe bond program with Ursa Re II Ltd., issuing $425 million Series 2020-1 Class AA Principal-at-Risk Variable Rate Notes and $350 million Series 2020-1 Class D Principal-at-Risk Variable Rate Notes
Represented an insurance company selling California earthquake insurance policies as special counsel, in its perennially sponsored catastrophe bonds
Represented an insurance company as special counsel, in the $175 million Series 2020-1 two tranche issuance of an insurance risk linked securities program
Represented a Bermuda-based special purpose insurer in Series 2020-1 ($335 million; 3 year term) and Series 2020-2 ($365 million; 2 year term) Principal-at-Risk Variable Rate Notes
Represented an insurance company as special counsel, in the $410 million Series 2016 three tranche issuances of insurance linked securities
Represented a global investment bank and a Switzerland-based reinsurance company as initial purchasers, in an offering pursuant to Rule 144A of $200 million principal amount of Series 2017-2, Class A Principal-at-Risk Variable Rate Notes due June 5, 2020
Served as special counsel to cedant (an insurance company) in Series 2016-1 and Series 2016-2 –
Served as special counsel to the workers’ compensation insurer fund, in the issuance of its $210 million 144A catastrophe bond offering
Represented an insurance company selling California earthquake insurance policies as special counsel, in the latest of its perennially sponsored catastrophe bonds
Represented a $3.2 billion international multi-asset manager, in a variety of finance and capital markets transactions in the re/insurance market, including various privately issued senior unsecured financings and surplus notes
Represented various investment management companies as underwriters’ counsel, on the Caelus Re V Limited 144A catastrophe bond offering of $450 million
Represented a Florida-based managing general agency in connection with its private capital raise from a leading international reinsurance organization
Represented several property and casualty insurance companies as underwriters’ counsel, in sponsored catastrophe bonds under the “Manatee” program
Represented an insurance company selling California earthquake insurance policies Series 2018-1 Principle-at-Risk Variable Rate Notes
Acted as lead counsel for a captive insurance company regarding the historic settlement of more than 10,000 tort claims against the City of New York and its contractors by first responders, trade union workers and volunteers arising out of the rescue and recovery operations at the former World Trade Center site and nearby locations on and after September 11, 2001. McDermott argued and won the appeal before the US Court of Appeals for Second Circuit regarding implementation of the settlement. In addition, McDermott recovered approximately $230 million from the London marine and non-marine markets after winning summary judgment in the company’s contribution action against certain of those insurers.
Served as counsel to a commercial insurer and liaison counsel for 12 of its co-insurers with respect to the largest settlement of Roman Catholic clergy sexual abuse cases in US history, as well as lead reinsurance counsel to the commercial insurer relating to its cession and disputes with its reinsurers arising from the settlement
Represented several clients of a top-tier health insurance company in a national class action filed in the United States District Court for the Southern District of Florida by non-physician medical providers alleging that the health plans conspired to deny reimbursement for medically necessary services rendered by the providers to the health plans’ insureds. We obtained a dismissal with prejudice of the complaint for failure to plead the conspiracy allegations with sufficient particularity
Successfully represented several entities of a top-tier health insurance company in an attempt from a group of healthcare providers to certify classes in a high-stakes Employee Retirement Income Security Act of 1974 (ERISA) lawsuit against eleven their clients. The named plaintiffs sought to represent a nationwide class of all healthcare providers (including physicians, hospitals, chiropractors, etc.) regarding claims that the defendants violated ERISA when they failed to provide proper ERISA-mandated appeal and notice procedures in recovering overpayments from health care providers
Represented property and casualty business insurance company as lead trial and appellate counsel in a four-month jury trial and subsequent appeals addressing insurance coverage for thousands of breast implant liability claims
Represented an international financial services provider in a six-week jury trial for its insurance contribution action against 17 co-insurers arising out of its settlement of a truck manufacturer’s asbestos and environmental liabilities nationwide
Represented a Canadian multinational insurance company and financial services provider in one of the largest life insurance companies in the world on its acquisition of shares from Chinese shareholders and represented the company in several litigation cases and settlements
Completed the comprehensive review and drafting of revised general liability and D&O policy forms for a property and casualty insurance company, with a focus on insurance coverage for sexual misconduct claims
Served as lead trial counsel for insurers in coverage litigation arising out of pollution of the “Love Canal” in upstate New York
Achieved a complete dismissal with prejudice of a class action complaint challenging the reorganization of a top-tier health insurance company from a nonprofit mutual insurance company into a for-profit stock insurance company. The plaintiff, a former policyholder, alleged that our client accumulated “excessive” surplus in contravention of its nonprofit status. The Court held that the claim was derivative in nature and that the plaintiff lacked standing to bring a derivative claim. The Court also held that the Florida ultra vires statute barred the action
Advised the exclusive US representative for the sport of swimming on the US Olympic Committee, on its attempt to re-domesticate its 25-year-old Barbados captive to the District of Columbia to save significant costs. An onshore captive is advantageous in that this type of LLC will be disregarded for tax purposes, thus allowing it to benefit from the tax-exempt status of its sole member. In a unique structuring, we planned to transfer the new captive arrangements to a DC-based limited liability company, and secured the approval of the Barbados financial services commission and the DC authorities
Advised Switzerland’s largest insurer, and one of the largest insurers in the world, in relation to the formation of a captive insurance structure. We assisted with the legal and tax aspects of the development of a Vermont-based cell captive, designed to be a risk sharing mechanism for its international business