Alternative Risk Transfer (ART) Solutions

The insurance industry has been transformed by rising costs and reduced capacity. This challenging market has led many companies to move away from traditional insurance solutions in search of alternative strategies to help them better manage their risk. Alternative Risk Transfer (ART) solutions could be an important part of your company's overall risk management strategy.

Instead of the traditional method of trading dollars with an insurance company, ART can be a method of funding for and managing your own risk. There is a significant potential for long-term savings through risk management and loss control. A captive program, for instance, is performance-driven, with potential for profit return. You can avoid the dramatic rate swings in the traditional insurance marketplace by creating a stable, predictable, efficient program. Your loss fund dollars can be invested for additional income and you need only purchase insurance for catastrophic loss.

This should not be viewed as a short-term solution - this is a fundamental change in the way you manage your risk. It requires a commitment of time. Properly done, there can be short- and long-term benefits.