Financing risk through mechanisms other than traditional insurance becomes important when you want to maintain overall control of your risk management program. The alternative risk market traditionally includes captives and elements of self-insurance, such as large deductibles or self-insured retention; however, many other approaches have evolved. Other techniques now being used are rent-a-captives, group captives, non-controlled foreign corporation dividend programs, and multiyear/multi-line insurance placements. The evolving esoteric capital markets approaches are being investigated as alternatives, although they are not widespread and not as generally applicable to most risks.
The key element of these alternatives is the tailor-made aspect of the program. Each program needs to be analyzed specifically for your particular anticipated cost/benefit outcome. Elements such as cash flow, optimum deductibles, your long-range planning goals, tax efficiencies, and the frictional cost of establishing the mechanisms both internally and externally must be properly analyzed.
Expert, Holistic Design
The expertise and judgment required for these types of plans are gained through seasoned market knowledge, along with experience and insight into underwriting and risk management strategies. The staff at MHBT is extremely skilled in the underwriting and marketing of large risks as well as managing self-insurance, large deductibles and captives from a risk management perspective. Our experts are at your disposal and will work with you to design and implement a cost-effective and advantageous program that will meet your needs.
Assessing and Meeting “Real World” Needs
For unique and unusual risks and coverage that require an "invention of policy," our team will assess and properly represent your needs to underwriters of the many companies available to MHBT. We are able to model a program that will ultimately meet your goals with respect to risk finance and overall control of your risk management program.