Alternatives to traditional indemnity-based insurance products are often a more efficient use of capital and can be fine-tuned to meet the needs of the insurance buyer. These products can be purchased in addition to a traditional program or in lieu of a traditional setup.
There are various types of financial instruments whose values are driven by insurance loss events which can be linked to property losses caused by natural catastrophes and weather events. These types of solutions and products are obtained through Insurance-Linked Securities (ILS).
Insurance-Linked Securities allow investors to provide capacity, primarily on property catastrophe risks. Types of ILS arrangements include but are not limited to the following:
Parametric products continue to evolve and are being purchased throughout the country. A parametric product allows the insured to specify a limit and retention, and the post-event recovery is based upon the peril for which it was bought and its intensity level (e.g. Category 3 Hurricane wind speed threshold). These covers can be based upon wind, earthquake, rainfall, etc. Examples of how these can be designed include:
AmWINS’ Alternative Risk Group is able to provide clients with access to alternative capital that cannot be supplied via the traditional broker market. Access to these markets includes the ability to provide diversified sources of capacity and enhanced structural features that traditional markets have difficulty providing. We provide tailored solutions and have the market relationships to provide viable alternatives.
ABOUT THE AUTHOR
This article was authored by Holland Walls, Alternative Risk Broker with AmWINS Brokerage of Alabama.
Legal Disclaimer. Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
(c) 2017 AmWINS Group, Inc.
The Thomas Fire, the largest fire in California's history, subsequently led to a mudslide on January 9, 2018, which caused a massive amount of damage in Santa Barbara and Ventura counties. The California Insurance Commissioner has issued a formal notice reminding carriers to pay for damage, citing the "efficient proximate cause doctrine." This article takes a closer look at the doctrine and how it has been challenged in court over the years.
Ordinance or Law insurance coverage provides limited protection for costs associated with repairing, rebuilding, or constructing a structure when physical damage to the structure by a covered cause of loss triggers an ordinance or law. Compliance with ordinances and laws after a loss can add 50% or more to the cost of a claim. This article will help you educate your insureds on exclusions and limitations and help them take a proactive approach to their insurance program.
In 2017, the issue of sexual harassment – especially in the workplace – gained greater awareness as accusations of harassment by high-profile individuals were constantly in the news. In many cases, sexual harassment lawsuits seriously impacted businesses and their respective insurers. Employment Practices Liability Insurance not only provides protection against employee lawsuits, but can also help your clients mitigate their sexual harassment risks.
Due to the Doctrine of Negligent Entrustment, the consequences of allowing an employee with a poor driving record to operate any motor vehicle for work purposes extend beyond a possible traffic violation or accident. These seven tips will help you to proactively manage your drivers and maintain your CDL files as part of your fleet safety program.
The Federal Motor Carrier Safety Administration mandate which requires nearly all U.S. truck operators to use electronic logging devices (ELDs) to track duty status has been upheld in court and will take effect December 16, 2017. The mandate will impact not just the trucking industry, but the trucking insurance sector as well.