7/31/2018 6:45:00 AM
Source: Business Insurance
Alternative risk transfer products such as parametric insurance and insurance-linked securities continue to move into primary insurance lines from the reinsurance sector, with more firms featuring them and more clients considering them to cover new risks.
Marsh L.L.C. in June formed its alternative risk transfer group, a virtual working group within the company to better connect its resources in the area, said Duncan Ellis, U.S. property practice leader for Marsh in New York.
“Insurance companies have created dedicated groups around these products, and as such we thought it was the right time to create a group to focus on these nonstandard solutions also known as alternative risk transfer products,” Mr. Ellis said.
The products are also drawing more attention from clients and policyholders seeking new or broader coverage, potentially on a long-term basis, according to sources.