Alternative risk solutions are not for the insurer but for the client to participate in the risk and take control of their own insurance destiny. If you have a company and you’re interested in taking on some risk with a group of other companies that have a great experience, then this is for you. These companies pan together and see the benefits of working together with other companies. Each company has a stake in insurance.
So, what are alternative risk solutions? In traditional insurance solutions, you pay your premium and you wave goodbye to the premium. In alternative risk solutions, you’ve got some skin in the game where if you have a good year, you get a percentage of your premium back. The more safety programs you put in place with life insurance agencies, the better-lost control you have. Being held accountable is what has brought out the best practices in most companies. Regular insurance is transactional in nature, but when you do the alternative risk’s way, you actually try and put a relationship into the program in a way that doesn’t exist in the regular insurance.
With alternative risk transfer, you have a chance to mold and shape your own insurance program. When you’re in a alternative risk insurance program, you’re making a buying decision that will have a positive impact on your company and ultimately lower your insurance cost.