Self-Insurance (Alternative Risk Transfer Solutions)

It’s when a business pays for all, or part, of its insurance losses, assuming the role of an insurer by introducing a system to complete the payment of claims.

Alternative risk transfer is a strategy to improve your business’ financial performance by moving your insurance in-house.

If you consider this the right move for your business, it can lead to benefits including lower insurance premiums and improved coverage.

Through implementing alternative risk transfer solutions, your business assumes the role of the insurer.

This requires a strategy to manage the formal procedures for processing and the payment of claims. Rather than hiring a third-party to handle the claims, your business will need a department to run this operation.

If your business has the capacity to do this, you’ll be able to pay claims at a faster rate. Additionally, you’ll closely monitor the source of all your losses.

By doing so, your business can establish effective loss control measures and monitor the financial performance of your programme. It grants your business more control, albeit at the expense of additional workforce requirements.