Alternative Risk Transfer (ART) is the use of strategies other than traditional insurance and reinsurance to transfer your risk.
ART can take many forms. Most commonly it will take the form of a company structure used to retain or pool risk on behalf of a single member or multiple members.
What are the common strategies?
Some of the common ART strategies include:
What are the benefits and attributes?
Common attributes will include:
ART can lead to organisational, financial and strategic benefits, including:
Is ART right for you?
ART is right for organisations seeking to take more control over their risk management, smooth out volatilities in pricing, broaden coverage and gain deeper insights into their losses and risk profile.
It is no longer only accessible to ASX100 and multinational companies. Improvements in company structures, growth in appetite from capital markets and better data capture has reduced establishment cost barriers and improved access for medium-sized companies and groups.
Improved access to ART, combined with a time of emerging risks, new technologies, volatile insurance pricing, has led to a strong surge in interest to blend ART with traditional insurance and reinsurance programs.