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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. |