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Alternative Risk: Basics & Benefits

Insurance Choices > Alternative Risk > Basics & Benefits


From tow trucks to 18-wheelers, rental cars to fuel haulers, National Interstate has become a leader in Alternative Risk Transfer (ART), or captive, programs for the transportation industry. And whether you are an agent with a specialty book of business looking to share risk and reward, or an industry-leading transportation provider seeking to capitalize on your expertise, we can work with you to create an innovative and intelligent insurance program.

At National Interstate, we are highly responsive to meet the needs of alternative risk transfer members. We have a separate claims management services dedicated exclusively to ART participants. And we operate a rental captive facility based in the Cayman Islands.

What’s more, we’ve staffed our company with the best and brightest in alternative risk transfer products. Our team is dedicated to launching and growing successful agency, group, and individual large account captives through rental and member-owned facilities. We pursue partners who are industry leaders and understand the long-term rewards of ART programs.

What is alternative risk insurance?

Alternative Risk Transfer insurance, or ART, is where you become, in essence, your own insurance company. With ART, you pay the premium into your customized program. And if you don’t suffer significant losses, a portion of that premium, along with investment income, may be returned to you.

With a traditional insurance plan, you pay the premium to an insurance company in return for insurance protection. The insurance company bears the risk, but also reaps the financial rewards if you do not make a claim.

If you are insured through a group ART program, the risk and reward are shared between you, National Interstate and other members. Groups that mitigate their losses enjoy bigger profits. Therefore, ART programs are best suited for companies that typically perform better than their peers when it comes to preventing losses or managing claims.

The basics of the basics.

  • Suited best for safety-conscious companies
  • High-performing companies can have a portion of premium returned
  • High-performing companies can earn investment income.

Are you a good operator with losses that are typically lower than those of your industry peers? Or are you an agent or broker with a seasoned book of business related to the transportation industry? If so, you may consider capitalizing on your good record and years of experience by joining an alternative risk insurance program.

When managed correctly, the long-term financial benefits of ART participation with National Interstate can be great. With the potential for underwriting profits and additional investment income, you can lower the effective cost of your insurance. You can enjoy more stable premiums. It’s an intelligent financial move for companies like yours.

Benefits that go beyond savings:

  • Improved or Customized Insurance Coverage
  • Specialized Claims and Risk Management Services
  • Agents and Brokers can capitalize on their profitable books of business by placing seasoned risks in a customized agency ART with National Interstate