FM, a commercial property insurer focused on property protection, engineering and loss prevention, has expanded its alternative risk transfer offering, introducing additional options for clients seeking greater flexibility in managing their insurance programmes.
The expanded portfolio comprises parametric insurance, structured risk solutions and captive cell arrangements. These options are intended to complement conventional property insurance, giving businesses additional ways to address insurance costs, limited market capacity and the financial consequences of unexpected losses.
“Our clients have a wide range of risk management needs and goals,” commented Laurel Rudnick, Chief Underwriting Officer at FM. “We’re building solutions that give them more flexibility, greater financial certainty and new ways to strengthen resilience over the long term.”
The three solutions offer different approaches to risk financing. FM’s parametric insurance provides payments when specified contractual triggers are met, with the aim of making funds available to help address the immediate financial effects of qualifying events. Unlike conventional indemnity-based cover, payments are linked to agreed parameters rather than being determined solely by an assessment of the loss incurred.
FM’s structured risk solutions enable organisations to share in the financial outcomes of their insurance arrangements, with the potential to receive a premium return subject to the agreed terms and actual loss experience. The structure is intended to link insurance expenditure more closely to claims performance, offering an alternative approach for businesses looking to manage their overall cost of risk.
The company’s captive cell solutions provide an alternative for organisations interested in the potential advantages of captive insurance without having to establish a standalone captive. By using a cell-based structure, businesses may be able to access certain captive arrangements while limiting some of the associated set-up costs, administrative demands and operational complexity.
FM added that the solutions are intended to help clients explore additional sources of insurance capacity, determine how much risk to retain and strengthen their financial position following qualifying events. The benefits available will depend on the structure selected, contractual conditions and each organisation’s individual risk profile.
The expanded offering forms part of FM’s broader approach to property risk management and insurance. Rather than replacing traditional property cover, the alternative risk transfer options are designed to work alongside existing insurance programmes, allowing businesses to consider different combinations of risk protection and financing.
FM said the solutions can be considered in conjunction with its scientific research, engineering capabilities and property loss prevention expertise. The approach is intended to support clients in developing risk management strategies that reflect their operational requirements, financial objectives and business continuity priorities.
