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Alternative Risk Transfer

Alternative Risk Transfer (ART) - blended risk retention/transfer solutions which serve as an alternative to, or enhancement of, conventional commercial insurance - is growing in popularity as multinationals seek bespoke flexibility for an increasing array of risk scenarios.

At Alternative Risk Transfer we create innovative tailored insurance, reinsurance and other non-traditional risk management solutions for a wide range of corporate and financial clients globally. We specialize in helping clients mitigate their most complex risks with bespoke multiyear and multi-line agreements covering a broad range of risks, leveraging our expertise in alternative risk transfer and the global capabilities of the Allianz Group.

Meet our experts

Grant Maxwell
Global Head of Alternative Risk Transfer
+44-203-451-3162 Email
Brian McNamara
Head of Global Fronting
+1-441-295-4722 email
David Brown
Head of Capital Solutions
+1-444-298-2380 email
Richard Green
Richard Green
Regional Head of ART Asia Pacific
+65-639-85-752 Email
Robert Makelaar
Regional Head of ART EMEA 
+41-44-285-1815 Email
Tom Houlihan
Regional Head of ART North America
+1-646-840-5029 Email
Dan Tomlinson
Regional Head of ART London & Nordics
+44-203-451-3173 Email

Alternative Risk Transfer

Structured/integrated insurance solutions

Structured solutions

Structured insurance programs are tailored solutions, designed to respond to a client’s particular risk management needs. The multi-year and/or multi-line nature of these solutions means the client is able to manage the volatility emanating from partially retained risks efficiently over longer periods. These programs often include profit sharing elements and can also include risks for which traditional insurance is unavailable and/or emerging risks.

Integrated solutions

Customized solutions provided on a multi-line basis designed to replace, bundle or complement a client’s existing mono-line program. A key feature is that we can offer a stable premium over a multi-year period in return for a stretched aggregate limit across all risks. Flexible integrated capacity can be utilized at different attachment points depending on client needs and locks in cover over the program term.

Specialized fronting solutions

We provide fronting solutions with or without risk transfer involved even if a multi-country approach is not required. The main differentiator versus traditional insurance lines is the multiline and/or multi-year nature of the solution. Often times this involves a captive or protected cell company to reinsure the risk as a whole or parts of it.

Basket aggregate solutions/Virtual captives

Tailored solution designed to provide stop loss protection excess of an aggregated attachment for retentions across multiple lines of business. Once combined losses within the retentions exceed the basket aggregate attachment, Alternative Risk Transfer pays the difference up to the basket limit. Basket aggregates work well for clients who have, or are considering, sizeable retentions and deductibles for multiple lines.

It can also function as a stepping stone for clients who are considering captive formation but are not ready to commit time and capital.

Global fronting/Captive fronting

Alternative Risk Transfer Captive Fronting draws on our considerable experience in insurance program design and management to deliver a range of global fronting solutions. From coordinated standalone local placements to fully integrated International Insurance Programs, we adopt a modular approach to program design to ensure our captive clients are fully covered wherever their business takes them. Our extensive global network comprising Allianz offices and carefully selected partners offers a wealth of underwriting, risk management, policy servicing and claims expertise in more than 200 countries and territories.

Parametric solutions

The key components of parametric solutions are the triggering event and the pay-out mechanism. Instead of directly calculating the actual loss incurred by the client, parametric insurance covers the occurrence of a predefined event and pays out according to a predefined scheme. Events may refer to an index-based trigger or threshold or an event within a defined area. This structure offers benefits beyond expanding coverage. The pay-out mechanism is driven by the event meeting or breaching the predefined threshold which results in payout of the predefined sum insured. It also reduces complexity from the loss investigation process and provides greater certainty of loss payment recovery compared to traditional insurance products. Therefore, parametric insurance provides clients with confidence when it comes to liquidity and speed of payout where predictive loss methods fall short and allows clients to better align their risk management goals with their financial objectives.

Other bespoke solutions

Alternative Risk Transfer's capabilities are not limited to the above programs and can be utilized to address a wide range of client concerns. Other innovative solutions designed for Alternative Risk Transfer clients include captive stop loss programs as well as structures with second event, parametric and dual trigger components. Ultimately, Alternative Risk Transfer will assemble a diverse team of experts to understand your business, the risks you manage and your risk transfer goals. This highly consultative, in-depth process results in superior programs tailored to your company’s needs.

Market focus at a glance

At Alternative Risk Transfer we create innovative tailored insurance, reinsurance and other non-traditional risk management solutions for a wide range of corporate and financial clients globally. We are actively looking to partner with clients across all our specialism, with a particular focus on:

Structured multi-year/multi-line solutions

  • Address gaps caused by non-availability of traditional cover, e.g., Commercial Auto, Property, D&O
  • Often contain elements of risk financing/profit sharing, for clients who want to retain risk, but still need to manage volatility
  • Bespoke solutions that manage risk in an integrated way across lines and years
  • Long term arrangements, but able to adapt as needs change

Captive Solutions

  • Multi-line and multi-year global fronting as a stand-alone service
  • Structured per event and aggregate excess of loss captive reinsurance

Virtual Captive Solutions

  • Insurance framework designed to create the economic benefits of a captive, when an actual captive is not a viable option

Coverage

  • Broad range of P&C lines of business or a combination thereof,
  • Can include both traditional and non-traditional elements,
    including parametric triggers
  • Global Fronting capability expands across 200+ countries and on a multi-line and multi-year basis, if needed
  • Transactions up to 5 years tenure
  • Capacity typically €25mn per occurrence, €50mn per annum, but can be higher depending on structure
AGCS will consider every risk on its own merit. Capacity and coverage offered to individual clients subject to hazard, Nat Cat exposure, grading, terms & conditions.
The products and services described on this page may not be available in all AGCS locations. Please contact your local office for full information on local product availability.
Learn more about our risk appetite

AGCS is here to partner with you

What you can expect from us

Market leading capacity to handle the largest risks
Financial strength backed by
strong ratings
Network to service clients in 200+
countries and territories
Manager of 2,800+ global programs for international insurances
A tradition of excellence, 100+ years of technical expertise
Wide range of dedicated risk consulting services by our engineers
We field one of the strongest claims teams of any global insurer
92m customers globally – we insure over three quarters of the Fortune 500®
4,000+ employees in over 30 countries and 50 offices worldwide
Part of the Allianz Group, a leading financial services provider
ESG integrated into our underwriting via industry-leading rules and tools
Allianz Group is a founding member of UN Net-Zero Insurance Alliance

Alternative Risk Transfer insights

Interview with Global Head of Alternative Risk Transfer

Structured reinsurance: a bespoke alternative for the perfect fit
  • Why are structured insurance and reinsurance solutions growing in popularity in the alternative risk management space? What are the advantages of such programs? We discuss with Grant Maxwell.
Read more
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Expert risk article

Virtual captives: the best of both worlds
Captives are booming – and AGCS offers captive-based solutions that cater to this trend. But not every company can or wants to operate its own insurer, so the AGCS Alternative Risk Transfer division also offers ‘virtual captive’ solutions, which combine the advantages of traditional risk transfer with those of risk financing.
read more
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Interview with Global Head of Alternative Risk Transfer

Closing the gap
In the current market environment, more and more companies are exploring alternative risk transfer solutions and captive programs to retain more risk themselves. Grant Maxwell discusses recent trends and deals in this innovative space and what his team can offer to clients.
read more

More news, reports and hot topics

Interview with Global Head of Alternative Risk Transfer

Structured reinsurance

Grant Maxwell discusses the growth in popularity of structured reinsurance solutions in the alternative risk management space.

Read more

Interview with Global Head of Multinational and Clients Services

Multinational solutions

Nigel Leppitt explains how multinational programs can support businesses with complex needs by bundling risks into one flexible master policy.

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Magazine

Global Risk Dialogue

We’re discussing the burning issues and emerging exposures in global risk management, designed to help you navigate through eventful times.

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Global | Press release

Allianz Risk Barometer 2022

Cyber perils are the biggest concern for companies globally in 2022, according to the Allianz Risk Barometer. Read the full press release.

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Video

Allianz Risk Barometer 2022

Watch our video highlighting the most important global business risks for 2022 and beyond.

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Global | Press release

AGCS appoints Shanil Williams to CUOC

Shanil Williams will move to the AGCS SE Board of Management, being responsible for AGCS’s underwriting business in the corporate lines segment.

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Video

Confidence in tomorrow

AGCS is the Allianz center of expertise for global business insurance and large corporate and specialty risks. AGCS is here to partner with you.

Watch here

Interview

with Grant Maxwell, Head of ART

In the current market environment, more and more companies are exploring alternative risk transfer solutions and captive programs to retain more risk themselves.

Read more

Expert risk article

Virtual captives: the best of both worlds

AGCS offers ‘virtual captive’ solutions, which combine the advantages of traditional risk transfer with those of risk financing.

Read more

Expert risk article

Financial Services risk: Covid-19

Uncertainties surrounding the economic and financial market impact of the pandemic are the overriding concerns for financial institutions and their insurers.

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Global | Press release

Covid, Cyber, Compliance and ESG

New AGCS report identifies key risks and loss trends for the financial services sector.

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Report

Financial Services - Risk trends

Financial institutions and their directors have to navigate a rapidly changing world, marked by new and emerging risks driven.

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Global | Press Release

Leadership appointment in Capital Solutions

David Brown will take over as Head of Capital Solutions. He succeeds his long-term colleague Richard Boyd who is moving back to the UK for family reasons.

Read more

Expert risk article

Technical Excellence

What does technical excellence truly mean? AGCS' Chief Underwriting Officers Tony Buckle and Renate Strasser share their perspectives.

Read more

Podcast

Allianz Risk Barometer

Thomas Varney joins the AGCS Podcast to discuss the findings of the Allianz Risk Barometer and the new threats to business that Covid has presented.

Listen now

Annual survey identifying business risks

Allianz Risk Barometer

Top 3 business risks for large-size companies in 2022

  1. Cyber incidents (50%) - 2021 rank: 2 (46%)
  2. Business interruption (50%) - 2021 rank: 1 (46%)
  3. Natural catastrophes (28%) - 2021 rank: 4 (19%)
find out more in our Allianz Risk Barometer 2022

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