Alternative Risk Transfer (often referred to as ART) is the use of techniques other than traditional insurance and reinsurance to provide risk-bearing entities with coverage or protection. Safire has extensive experience, systems and licence to offer many forms of ART structures to our clients, ranging from contingency policies to “first” and “third” party cell captive insurance.
We at Safire understand the complexities of risk and the shortage of efficient capacity and products from conventional markets to meet the unique requirements of certain niche industries. Cell captive insurance enables a non-insurance entity to share in the insurance licence of a registered insurer like Safire and on-sell an insurance product to a specified client base without incurring the prohibitive expenses of establishing and managing a stand-alone insurance company.
First party cell business is a structure whereby the cell owners are also the insured policy holders being provided the cover.
This is a very effective self-insurance mechanism initiated to:
- Access reinsurance markets directly
- Insure the uninsurable
- Benefit from good risk management
- Get better use of one’s capital through capital “reactivation”
- Cover your own risk on a finite basis
Third party cell business is a structure allowing a non insurer to legally on-sell insurance products to a third party. Safire offers a full menu of services relating to this product class including:
- Product conceptualisation, structuring and wording
- Reinsurance and capacity provision
- Administration (underwriting, financial and claims)
- Capital and solvency protection
- Joint venture partnerships.