Alternative Risk

Addressing Cyber Risk with a Captive Solution

Our whitepaper

Alternative Risk 

Innovative, customised solutions to unconventional or complex risks  

There may be times when a company needs to mitigate a substantial risk that is not addressed effectively in the traditional insurance or financial markets.

We help companies address non-traditional exposures providing highly customised fronting programmes that apply insurance and capital market strategies.

  • Requiring evidence of insurance for regulatory, disclosure, financing, marketing, trading, or counterparty needs
  • Facing a specific problem for which there is no clear or viable risk transfer solution
  • Encountering a situation where current market conditions or shifting underwriting capacity are limiting availability of risk transfer
  • Planning a merger, acquisition, or divestiture in which difficult risks are impeding the transaction
  • Confronting significantly increased retentions or premiums
  • Experiencing restricted coverage due to adverse industry claim trends
  • Challenged with high attachment points due to poor loss experience or market conditions
  • Exploring the possibility of retaining risk as part of a comprehensive risk management strategy
  • Pursuing more efficient access to the excess markets
  • Evaluating the closure of redundant captives in response to capital requirements under the Solvency II Directive
  • Seeking to offset significant retained or self-insured legacy liabilities
  • Managing short term volatility that could be better controlled or financed over a multi-year time horizon
  • Considering alternatives to protect against the accumulation of retained losses and/or to free up capital
  • Seeking to satisfy a primary lead layer to support an excess tower for a difficult to insure risk
  • Requiring broad flexibility regarding the type of exposure, class of risk, and/or contract issued
  • Looking to realise potential tax efficiencies
  • Seeking to insure risks that cannot otherwise be financed due to corporate structure (e.g., because a partnership must distribute all earnings, it cannot effectively fund for known risks)
  • Interested in offsetting liabilities (e.g., litigation or pollution remediation reserves)
  • Over 50 years of providing global fronting solutions leveraging AIG’s network of owned operations in over 90 countries, supported wherever required by local insurance partners
  • Over 20 years of delivering non-traditional solutions to our clients’ unique risks, using innovative structured (re)insurance solutions
  • A market leader providing non-traditional insurance and reinsurance solutions
  • Unique deal team culture bringing together underwriters, actuaries, lawyers, accountants, credit officers, claims professionals and operational specialists
  • Technical expertise to cover risks for which there is no conventional insurance market
  • Ability to analyze complex and unique risks
  • A history of partnering with clients to truly understand their business needs to provide innovative risk transfer and risk financing solutions
  • Superior servicing and claims handling, reporting, and management
  • In-depth knowledge and advice on programme structure, coverage, and regulations
  • Full access to AIG’s multinational policy issuance capabilities and expertise controlling multi-currency cash flows
  • Access to the resources of the AIG organisation, including significant risk-bearing and risk financing capacity
  • Ability to insure virtually all lines of business
  • Extensive product customisation ability
  • Broad flexibility in type of exposure, class of risk, and type of coverage (e.g., insurance, reinsurance, loans, or other financial products)
  • (Re)insurance to ring-fence liabilities (e.g., liability buyouts, portfolio transfers, captive redomiciliations)
  • Seamless policies that cover multiple risks within a single integrated programme
  • Regional fronting expertise and ability to meet local regulatory requirements
  • Full range of captive management and protected cell services.