Alternative risk strategies can give employers financial benefits and added control.
Advantages
Financial Benefits
- Improved cash flow
- Shared underwriting profits
- Return-on-investment income
- Potential tax benefits
- Reduced program expenses
- Reduced claim costs
Control-related Benefits
- Gain stability through market cycles
- Influence coverage terms
- Direct access to reinsurance market
- Loss-sensitive versus class-sensitive underwriting
- Exert control over claims/loss control services
- Expand program to other locations and lines
