Alternative Risk Transfer & Captives

Alternative Risk Transfer & Captives 1

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?

ART is best used to meet the financial objectives of its beneficiaries, and ART strategies vary depending on the type and scope of those objectives.

Some of the common ART strategies include:

What are the benefits and attributes?

ART should be established with a long-term perspective.

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.

Organisations pursuing ART should have:

How we can help

Talk to us about Alternative Risk Transfer
For more information or to seek our help, please contact our specialist team at Barrack Broking.
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