Webcast Replay | Structured Risk Solutions 101

Structured risk solutions can offer a viable solution to traditional insurance program for many buyers, allowing them to be less reliant on traditional market cycles and retain more risk while reducing volatility, panelist on a recent Lockton webcast said.

At its core, a structured risk solution is a multiyear insurance program with risk-sharing elements. Structured risk solutions typically offer coverage over a three-year period and can be implemented to replace a variety of traditional insurance market solutions.

The biggest difference between a traditional insurance policy and a structured solution “is the ability of the insured to finance a portion of the risk and design an insurance policy that really allows them to buy protection based on their individual risk tolerance,” said Parag Bavishi, Chief Underwriting Officers, USQRisk.

A structured risk solution can sit alongside traditional insurance placements, complementing them as part of an organization’s long-term risk management strategy, said James Donald, Head of Risk Finance, Lockton. “It brings back a lot of control to the risk manager or insurance buyer."

Despite a name that suggests rigidity, structured risk solutions can be tailored to meet individual companies’ needs. “Customization is at the heart of all structured deals,” said Anneliese Stonebridge, ART Senior Structured Underwriter, Allianz. “Everything is bespoke to the business — the limits, the lines of business you want to include, the coverage you want to include, how much the client wants to fund,” and more, she said.

Watch a replay of the webcast below.