Alternative Risk Financing
It is estimated that nearly one-half of the total property/casualty insurance premiums in the United States flows through alternative markets. These risk-financing options are open to businesses that generate enough predictable claims activity to partially self-insure traditionally insured exposures. In addition, many businesses are financing non-traditional risks through these creative techniques to stabilize earnings or share these with other capital markets. These options often create the following benefits:

• Stabilized insurance premiums and associated costs
• Improved cash flow
  
• Underwriting profits that flow back to the business
  
• Tax savings and creative investment advantages
  
• Ability to choose the service providers for loss prevention and claims
  
• Avoiding "industry group underwriting"
  
• Ability to safely self-insure their own losses and minimize the impact on their bottom line
  
• More control and flexibility of coverage
  
• Accessing the reinsurance market directly
  

• Group Captives (Heterogeneous & Homogeneous)
  
• Single Parent Captives
  
• Rent-a-Captives
  
• Industry/Association Captives
  
• Risk Purchasing Groups
  
• Reinsurance for Qualified Workers’ Compensation Self-insurers