Captives / Alternative Risk

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The Alternative Risk Transfer Market is the Fastest Growing Commercial Insurance Market – Here’s Why

A broad and simple definition of Alternative Risk Transfer is when a commercial insurance consumer assumes a portion of its own risk in exchange for lower premiums or a reduction in their net cost of insurance.

Why is alternative risk transfer insurance growing so fast?

• High performance companies don’t subsidize (with high premiums) low performing consumers whose premiums are inadequate to pay their claims
• High performance companies gain access to profits (underwriting profit and investment income) generated from current insurance premiums
• High performance companies get more control of claim management, risk management, and with whom they share their risk
• High performance companies gain stability and predictability in their premiums rather than the typical market swings of the insurance industry

What are some of the options available within the alternative risk transfer market?

• High Deductible Plans
• Self Insured Retention (SIR) Plans
• Retrospectively Rated Plans
• Individual or Group Qualified Self Insured Plans
• Risk Retention Groups
• Captive insurance company formations
  • Single Parent Captive
  • Rent-A-Captives
  • Group Captives

Only high performance companies qualify
Not every company qualifies for alternative risk transfer (ART.) This market is typically only available to the highest performing companies. 

 RJF’s alternative risk team (which may include our safety and loss prevention, claims, human resource and employee wellness/health management teams)  will work with you to help you reduce loss ratios, implement safety procedures and establish a culture of safety within your organization.

Determine your options and design your product
Once our teams have established that you qualify for an alternative risk transfer product, the final step is to design a product specifically for your firm.

 Find out if this popular type of insurance is an option for you.
Get started with our Quick Response form, email Courtney Claflin, Vice President, Alternative Risk, or call 763-746-8000 or 800-444-3033 to learn more.