Treatment of Risk

The operating company(ies) has many different kinds of risk:
Physical Risk, Business Risk and Enterprise Risk.

Traditional Risk Transfer

Standard Insurance 
Commercial Policy: 
P&C, Life & Health

For Profit Commercial Insurance Company

Self-Insured Risk​

  • Deductibles or Retentions
  • Co-Insurance
  • Uninsured
  • Underinsured

Paid out of operating income of the business – often unplanned.

Alternative Risk transfer​

  • Risk Retention Groups
  • Purchasing Groups
  • Captives

Similar or like organizations share risk among themselves.

A Micro-Captive is a hybrid of Alternative Risk Transfer and Self-Insurance vehicle.