Art Market Gets Creative

By Sandra Springer October 31st, 2012

Excerpt: Captive Resources supplements its group captives with medical stop-loss programs and micro-captives.

While the alternative risk transfer (ART) market has not been unscathed by the recession and protracted economic recovery, it’s becoming more and more difficult to find any signs of ill effects. On the heels of one of the highest catastrophic loss years on record, the ART market appears to have weathered the storm well, as interest has remained strong and is once again on the rise.

One factor generating this increased interest is the broader range of risk-financing products available, as more creativity comes to the market. For example, the surge in popularity of capital markets-based products such as Insurance Linked Securities (ILS) in 2012 perhaps indicates a greater acceptance and willingness to more readily incorporate more creative strategies into risk-financing programs. But by far the most active segment remains captive insurance companies. Just as in the broader ART market, captives are being utilized in creative new ways. Among the more recent innovations are stop-loss programs for self-funded health plans and 831 (b) captives.

Download the PDF to read the full article from Rough Notes in October 2021.

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