Alternative Risk Transfer & Structured Risk Financing
Non-traditional risk financing solutions for businesses that have outgrown the commercial insurance market or seek greater control over their risk and capital.
What is Alternative Risk Transfer?
Alternative risk transfer (ART) encompasses a range of non-traditional risk financing mechanisms that allow businesses to manage risk outside the conventional insurance market. For businesses with the scale, risk profile, and financial sophistication to benefit, ART solutions can provide significant advantages over traditional insurance — including lower cost, greater coverage flexibility, access to reinsurance markets, and the ability to retain underwriting profit. Grandbay Financial advises clients on the full spectrum of ART solutions, from risk retention groups and self-insurance programs to parametric insurance and structured risk financing.
How We Structure Alternative Risk Transfer
Risk Retention Groups (RRGs)
Group captive structures that allow businesses in the same industry to pool their risks and self-insure collectively.
Self-Insurance Programs
Structured self-insurance with appropriate stop-loss protection for businesses with sufficient premium volume and risk management capability.
Parametric Insurance
Index-based coverage that pays a predetermined amount when a specified trigger event occurs — regardless of actual loss.
Structured Risk Financing
Multi-year, multi-line programs that combine risk retention, risk transfer, and financial instruments to optimize the cost of risk.
Finite Risk Programs
Insurance structures that combine risk transfer with a significant risk retention component and investment income element.
Reinsurance Access
Direct access to reinsurance markets for businesses with sufficient premium volume to bypass the primary insurance market.
Alternative Risk Transfer FAQs
Ready to Explore Alternative Risk Transfer?
Our specialists will analyze your risk profile and design a alternative risk transfer program tailored to your business objectives and risk tolerance.