Alternative Solutions & Product Innovation

Alternative Solutions & Product Innovation

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. The risk may be too complex or multi-faceted or just very unusual. It may be new to the market and/or have no available loss data associated with it.

We help clients address these challenging exposures by providing highly customised, innovative programmes that apply insurance and/or capital market strategies. No matter how complex or material the risk, our flexibility, capacity and expertise make us the provider of choice. Our programmes can be designed for almost any exposure and are not limited to any particular class of risks.

We partner with each client to understand its objectives, identify and analyse its risks and custom-design a programme to support its business strategy. Our team has the skills and resources to guide clients through all phases of the programme—from analysis to concept development to implementation and ongoing administration. We are a market leader with the flexibility and vision to design innovative solutions and the expertise, resources and financial strength to implement them.

Programme Structures

Blended Structures

  • A single policy combines client funding of expected losses and the utilisation of risk transfer above the funded layer.

Customised Risk Transfer

  • Primary or excess risk transfer insurance policies are tailored to provide solutions for complex, unusual, or difficult to insure risks not currently addressed in the traditional insurance or financial markets.

Buyouts

  • Customised programmes are designed to reduce or remove liabilities resulting from traditional insurance risks or unusual exposures.

We help clients address these challenging exposures by providing highly customised, innovative programmes that apply insurance and/or capital market strategies. No matter how complex or material the risk, our flexibility, capacity and expertise make us the provider of choice. Our programmes can be designed for almost any exposure and are not limited to any particular class of risks.

We partner with each client to understand its objectives, identify and analyse its risks and custom-design a programme to support its business strategy. Our team has the skills and resources to guide clients through all phases of the programme—from analysis to concept development to implementation and ongoing administration. We are a market leader with the flexibility and vision to design innovative solutions and the expertise, resources and financial strength to implement them.

Features & Benefits

  • Requiring evidence of insurance for regulatory, disclosure, marketing, trading, or counterparty needs
  • Facing a specific problem for which there is no clear risk transfer solution
  • Encountering market conditions or changing underwriting capacity that limit the ability to transfer risk
  • Facing difficult risks that are impeding a planned merger, acquisition, or divestiture
  • Facing significantly increased retentions or premiums
  • Unable to arrange the extent of cover they prefer due to unfavourable industry-wide claims trends
  • Facing high attachment points due to poor loss experience or market conditions
  • Exploring the retention of significant elements of risk as part of a comprehensive risk management strategy
  • Requiring more efficient access to the excess markets
  • Considering the closure of redundant captives in response to capital requirements under the Solvency II Directive
  • Looking to insure or transfer significant retained or self-insured legacy liabilities
  • Managing short term volatility that could be controlled or financed better over a multi-year time frame
  • Considering alternative ways of protecting themselves against the accumulation of retained losses and/or freeing-up capital
  • Looking to satisfy a primary lead layer as part of an excess tower for a difficult to insure risk
  • Requiring flexibility in the type of exposure, class of risk, and/or contract issued
  • Seeking to realise potential tax efficiencies
  • Looking at insuring risks that the corporate structure prevents financing otherwise (e.g., because a partnership must distribute all earnings, it cannot effectively fund for known risks)
  • Interested in reducing or removing liabilities (e.g., litigation or pollution remediation reserves)

  • Over 20 years of delivering non-traditional solutions to address clients’ unique risks, using innovative structured (re)insurance solutions
  • A market leader providing non-traditional insurance and reinsurance solutions
  • A team culture bringing together underwriters, actuaries, lawyers, accountants, financial officers, regulatory and operational specialists to create unique, holistic solutions
  • Technical expertise to cover risks for which there is no conventional insurance market
  • Ability to analyse complex and unique risks
  • A history of partnership with clients that enables us to really understand their business needs and provide optimum risk transfer and risk financing solutions
  • In-depth knowledge and advice on programmes, cover, and regulations
  • Full access to AIG’s multinational policy issuing 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 contract (e.g., insurance, reinsurance, loans, or other financial products)
  • (Re)insurance to ring-fence liabilities (e.g., liability buyouts, portfolio transfers, relocation of captive domiciles)
  • Insulation against market volatility via multi-line and/or multi-year policies
  • Seamless policies that cover multiple risks within a single integrated programme