What is Alternative Risk Insurance?
Alternative risk insurance works the same as a general liability or auto policy, but the program is based on the insured’s comfort level in taking on a larger deductible or retention. It allows the organization to work with AIG to establish specifically designed solutions including captive programs that are compliant with government regulations, but also allow the organization to retain a portion of the risk while working with a licensed adjuster.
Why does your business need Alternative Risk Insurance?
- A large retail chain with frequent losses prefers to settle these more common losses itself
- Increased oversight of losses within a client’s retention
- Alternative premium options by retaining more risk
What does Alternative Risk Insurance cover?
AIG partners with each client to understand their objectives, identify and analyze risks, and custom design a program to support their business strategy. AIG guides clients through all phases of the program — from analysis to concept development to implementation and ongoing administration. AIG can provide the following alternative risk solutions:
- Blended structures
- Customized risk transfer
- Customized collateral solutions
- AIG will provide monitoring and oversight of third-party administrators for timely claims handling
The AIG Advantage
- Provides highly customized solutions and capital market strategies to help clients design an alternative risk program structure
- Draws on decades of alternative risk experience as a market leader in non-traditional (re)insurance with the flexibility and vision to design innovative solutions supported by the expertise, resources, and financial strength to implement them
- Provides captive capabilities that enable organizations to retain a portion of risk themselves by working like a deductible with the difference that an offshore entity is set up as the insured
- Employs a dedicated claims management team to provide third-party adjustors, claims monitoring, and oversight
- Deploys a unique collaborative culture of underwriters, actuaries, lawyers, accountants, credit officers, and regulatory and operational specialists across AIG to meet client needs
- Meets clients’ unique needs by drawing on technical expertise to cover risks for which there is no conventional insurance market
- Backs programs with financial strength rated A+ by S&P, and A by AM Best