Alternative Risk Transfer:
A Sound Option to Traditional Insurance
Changes in the insurance industry have sparked renewed interest in Alternative Risk Transfer (ART)—a method of protecting your assets using the non-traditional insurance market. ART is a sensible alternative for FM Global clients with a long-term, top-management commitment to property loss prevention, a willingness to share the risk and a serious focus on loss control.
FM Global's Rent-A-Captive Alternatives
FM Global offers its clients alternatives to the traditional risk-transfer market through two subsidiary companies, the Watch Hill Insurance Company and New Providence Mutual Ltd. Both are rent-a-captive facilities that offer clients the benefits of a captive insurance company without the upfront costs, capital investment and significant maintenance cost associated with forming an owned captive.
A segregated-cell, controlled corporation based in Bermuda, NPML provides its clients with a stable offshore political environment, along with an established insurance, reinsurance and banking infrastructure.
FM Global's rent-a-captive solutions typically are tailored to your specific needs, and offer benefits beyond traditional insurance plans, including:
- Reduced operating costs
- Investment income and underwriting profit
- Broader coverage
- Pricing and coverage stability
- Direct reinsurer access
- Improved service
- Increased control
- Immediate financial reward for reducing loss
- Enhanced risk management perspective
- Fewer regulatory restrictions
Providing Additional Services
In addition to facilitating the necessary legal, accounting, licensing and support functions, FM Global is available to assist our clients in performing:
- Captive feasibility studies
- Loss analysis/risk retention analysis
- Program design
- Risk financing reviews
What Is a Rent-A-Captive?
A rent-a-captive is a captive insurance company formed by third-party investor(s), and is operated as an income-producing venture for the renters.