Alternative Risk Transfer (ART)

Traditional reinsurance products cannot always meet clients' needs. An ART, or a financial reinsurance solution, may better serve a buyer's objectives. Indeed, depending on objectives, a financial solution may be the first choice.

The solutions devised by BMS are always tailored to the buyer's needs. They range from 'time and distance' type structures to complex, blended solutions that allow varying degrees of risk transfer and utilise a variety of triggering events.

Cover may be prospective or retrospective and will depend on whether the risk management is intended for an existing situation, or for a contingency that a client wishes to prepare for.

Two major issues weigh heavily in our consideration. First, the effects of these covers on a client's balance sheet; and second, their impact on the views of ratings agencies, insurance regulators, actuaries and auditors, all of whom have an influence on the effectiveness of financial reinsurance structures.

Simon Clutterbuck
Director
BMS Intermediaries Ltd