Alternative Risk Transfer

Merlinos & Associates has extensive experience providing expertise in the area of alternative risk transfer (captive insurance, risk retention groups, trusts, self insurance). Our consultants have worked with entities in various alternative risk venues including Bermuda, Cayman Islands, Turks & Caicos Islands, Barbados, Anguilla, South Carolina, Washington DC, Vermont, Nevada, Alabama and Kentucky.

Since mid-2000, we have assisted in the formation stage through the operational stage of almost 100 captives. Additionally, we have assisted in the formation of six risk retention groups.

The role we play for our alternative risk transfer clients typically includes:

• Preparation of loss cost studies for the applicable exposures and proposed coverages.
• Development of rates, rate structures and rating rules, including experience rating plans where applicable.
• Preparation of financial projections based on the proposed rates, budgeted expenses and anticipated claims under various confidence level scenarios.
• Assistance with decisions related to the appropriate level of capitalization.
• Recommendations on reinsurance structure, including decisions on levels and types of reinsurance to purchase as well as coinsurance percentages and retentions, preparation of actuarial information for reinsurance submissions, negotiating with reinsurers.
• Participation at steering committee meetings.
• Assistance with development of risk management protocols.
• Assistance with developing management information.
• Underwriting of large accounts.

For more information on how we can help with your alternative risk transfer needs, please contact: