Alternative risk transfer

A market leader in designing and implementing innovative risk financing solutions, Zurich Corporate Solutions, employs both insurance and banking techniques to create solutions for your most challenging problems.

Partnered with Zurich Global Corporate UK, Zurich Corporate Solutions' multidisciplinary team of actuarial and financial specialists, legal and tax analysts and insurance underwriters will work with you to develop a thorough understanding of your risk portfolio, then tailor solutions to meet your specific risk management objectives.

There’s nothing ordinary about your needs and we understand the importance of helping you discover out-of-the ordinary ways of looking at risk.  Finding advantages you thought were unattainable in today’s market should be driven by inspiration, not indifference.

Our alternative risk financing programmes include:

Integrated insurance – extending insurance risk transfer over several years and multiple risks.

Structured solutions – a blend of risk retention and risk transfer that addresses your business and operational risks. Programmes can include those designed to provide insurance capacity for index-based risks and for which there is no current market alternative and can also address your company’s insurance and financial risks on one common platform.

Integrated insurance

Our integrated insurance programmes allow you to manage your traditionally insurable risks in a more comprehensive manner. Rather than buy insurance on a product-by-product basis for each risk your company faces, an integrated solution can provide one platform to manage your entire risk portfolio. And instead of procuring separate limits each year, integrated programs are designed to be long-term in nature, providing you with predictable costs and enhanced stability.

Earnings volatility can also be minimized through aggregate protection that is designed to limit the total amount of risk your company retains in any given period.

The advantages

• Budget stability
  Typical integrated risk financing structures provide a guaranteed rate and capacity for up to three years. Hence, they enable companies to avoid the volatility of the insurance marketplace and achieve budgeting stability.
  
• Earnings protection
  The recent hard market has forced many companies to increase their per occurrence retentions. However, these higher retentions can have a compounding effect on earnings in the event of a loss. By providing aggregate protection, an integrated program enables a company to "lock in" the amount of loss that can affect its income statement in a given period.
  
• Cost and administrative efficiencies
  Integrated insurance programs allow a company to avoid the redundancies and time commitment associated with buying separate insurance policies.

Structured solutions

Structured financial solutions combine disciplines from insurance and banking to address a client’s specific financial and risk management objectives. These solutions have multiple applications, from providing additional capacity for traditional risks to new capacity for uninsurable or difficult-to-insure risks, such as intellectual property or brand protection.

Structured solutions typically combine self-financed insurance protection with risk transfer elements. They extend over a multiyear term and incorporate several risk classes, enhancing diversification. Lastly, a structured solution can enhance shareholder value by stabilizing cash flows and insulating your financial statements from catastrophic losses.

The advantages

• Expense Mitigation
  Many structured programmes address business risks for which there is no alternative available in the capital or insurance markets. A structured solution can minimize the effect of a catastrophic loss on the balance sheet.
  

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