Structuring Non-Standard Insurance Programs
KMRD is not in the business of selling insurance. We will develop the optimal risk transfer structure for your specific risk appetite.
Better CoverageWe take the time to thoroughly review your policies and deliver the right risk and insurance coverage for all your needs.
Better AccessWe provide a secure and collaborative environment offering 24/7 access for everyone on your team around the globe.
Better ControlWe perform a disciplined review across your entire operation to understand all of your company’s exposures.
Better DeliveryWe take the time to get to know your company and then assign a team that cares about getting it right.
What are non-standard insurance programs?
For large companies, it is almost always less expensive to self-insure the usual and predictable level of claims. The level to which you self-insure, whether on a per-claim or aggregate basis, is a decision that requires a cost / risk benefit analysis. A non-standard insurance program blends traditional insurance with self-insurance.
Levels of insurance
- Guaranteed Cost (full risk transfer)
- Small Deductible Programs
- Retrospective Rating Programs – A “retro” is similar in structure to a large deductible program except in how it is funded. These programs include the taking of risk on a per-claim and aggregate basis but require you to pre-fund the insurance and predicted loss amounts. When the policy is over, you receive a return if your losses are good, or you pay an additional premium if your losses are bad.
- Bundled Large Deductible Programs – This program enables you to accept as much risk as you would like. However a traditional insurance company provides the insurance, reinsurance, claims and loss control services. You fund the fixed insurance charges then pay the claims below a “deductible stop-loss structure,” on a monthly basis “as you go”.
- Unbundled Large Deductible Programs – This is similar to a Bundled Large Deductible Program, however, you elect to purchase and manage your own claims and loss control services as part of a separate contract. In this case, the insurance company is only providing the risk transfer / insurance / reinsurance component of the program.
- Group Captives –A group of companies can share joint and several liabilities in establishing and managing a captive structure. This type of program is structured much like a Bundled “3-line (GL, Auto & WC)” Large Deductible Program. However; you are required to pre-fund your losses in an escrow account invested offshore, or in a tax advantageous domicile such as Vermont. In contrast, a large deductible program enables you to pay claims “as you go”. These captives can either purchase the insurance paper/licenses from an existing carrier or, if well capitalized, create their own insurance company.
- “Rent –a- Captives” – A captive structure without the upstart cost or shared decision making issues.
- Self- Insurance – Companies can elect to self insure their exposures. With respect to mandatory programs such as workers compensation or auto, the approval and overview of state regulators may apply. Often these programs do include an insurance component such as stop loss insurance on either a per claim basis, aggregate basis or both.
- Wholly Owned Captive – A captive that is created, controlled, and wholly owned by you. These captives can either purchase the insurance paper/ licenses from an existing carrier or, if well capitalized, create their own insurance company. The up-front capitalization and formation costs of a wholly owned captive may be cost-prohibitive for companies with average losses less than $1 million.
We have experience in working on and evaluating all of these structures and will educate you on your options.
Expertise and Better Coverage to Meet Your Insurance Needs
KMRD’s team of experts have extensive knowledge in designing and managing insurance programs. Our disciplined approach and proven process, and a top-tier service team will improve your risk profile.
Safety, Loss Control & Claims Advocacy Programs Designed to Keep Your Company Safe and Secure
- Safety & Loss Control – Is your agent assisting with your safety challenges? Does your agent understand the challenges surrounding the safety of your employees and customers? KMRD will work with you to include safety in our service plan establishing tangible, manageable initiatives to improve your loss mitigation programs and safety culture… WORLDWIDE
- Claims Advocacy – KMRD’s Claims Advocates make sure your claims are handled with a sound resolution strategy to meet your goals and objectives. We understand and overcome the communication challenges associated with international claims. It is where “the rubber hits the road”.
Better Collaboration and Access to Improve Your Total Control
- Are you able to prepare your own Certificates of Insurance for your customers or regulatory agencies that monitor your efforts on a worldwide basis?
- Do you want to access your insurance and risk management information on a 24/7 basis anywhere in the world? Our proprietary risk management system, KMRD XChange, enables you to communicate as though we are in the same office. Our customers can access their insurance information at any time.
KMRD can make this process easier with XChange. Request a demo today.
More Reliability and Better Quality Controls to Improve ROI
KMRD Delivers Better Value
KMRD knows how to design successful insurance & risk management programs. The result is better, more predictable coverage at a lower cost of risk. That’s the value of working with us.
We’d love to help you evaluate what type or risk-transfer program fits your needs and risk appetite. Call us at 866-957-KMRD (5673) or send us an email via the contact form below.
For a consultation regarding your insurance & risk management program, please fill out the form below: