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 sponsored, protected-cell (also known as a segregated cell), controlled corporation that serves as FM Global's onshore option in North America for alternative risk transfer. The company was established in the state of Vermont, the largest domicile for captive insurance companies in the United States, to meet the needs of clients in North America who want to keep their financial interests onshore.
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.
Customized Coverage
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