Alternative Risk Structures (including captives) offer an insured or group of insureds a mechanism whereby they can benefit from better than expected experience in an insurance program.

What are the various types of alternative funding structures?

• Deductibles (both large and small).
• Segregated Cell/Rent-A-Captive Arrangements.
• Association or Group Captives.
• Owned Captives.
• Risk Retention Groups.
• Risk Purchasing Groups.
• Fully Funded Arrangements.
• Self-Insured Retentions.

These structures can be used individually or in combination with each other in developing the most efficient way to reach the insured’s goals.

(For a brief primer of alternative market terms, please click here.)

What are the advantages of alternative risk structures?

• Greater control and flexibility over your total cost of risk.
• Greater confidence in your long-term costs of risk.
• Greater influence over risk management functions arising from-
  • Reduced costs for claims administration.
  • Focused loss control activities.

What factors should be contemplated in the selection of the best approach for your association, group, or client?

• Number of insureds—individual insured or group of insureds.
• Insurance line of business and level of premiums charged.
• Regulatory issues.
• Carrier’s attitude regarding alternative funding.
• Insured’s loss experience and loss control efforts.
• Insured’s financial position.
• Insured’s appetite for risk.

Intercorp has a wide range of experience and affiliated partnerships to provide its clients with valuable input and guidance in selecting the appropriate Alternative Risk Structures.

Click here to read “Why Form a Captive or Risk Retention Group for Your Association?”

Contact us for more information.