Alternative Risk Transfer (ART) Solutions

Key elements of ART for Employee Benefits

• Captive insurance refers to companies creating their own insurance entity to cover own risks, such as medical stop-loss, group term life, and long-term disability. This allows for greater control over insurance costs and coverage terms.
• Risk Retention Groups (RRGs) enables companies to pool their risks and share the costs of claims, providing a more stable and predictable insurance environment.
• Insurance Pools Similar to RRGs, insurance pools allow multiple companies to combine their resources to manage risks collectively, often leading to cost savings and improved risk management.

Functionality of ART

• Self-funding: Involved companies assume the first layer of healthcare risks and purchase medical stop-loss coverage to protect against large or aggregate losses. 
• Risk management: Participating companies implement risk management initiatives and wellness programmes to foster a culture of health and reduce overall costs. 
• Pooling resources: Companies use their combined purchasing power to negotiate better rates with stop-loss carriers, third-party administrators, and other service providers.

ART for employee benefits offers several advantages, including cost control, flexibility, financial stability, and profit opportunities. Moreover, ART provides a creative solution for managing healthcare costs and risks. By leveraging non-traditional methods such as captive insurance and risk retention groups, companies can achieve greater control, flexibility, and financial stability, ultimately enhancing the overall wellbeing of their employees.