Alternative Risk Organizations
Captive Reinsurance for Alternative Risk Organizations
Preferred Re helps captives, risk retention groups, risk purchasing groups, self-insured groups, and other alternative risk vehicles evaluate captive reinsurance options, identify captive fronting options when needed, and align the parties around practical terms.
We Understand Your World
Alternative risk structures give owners and members greater influence over how risk is financed and managed. That control also makes decisions about retention, capital, fronting, reinsurance, contracts, and service partners especially important.
How Much Risk To Retain
Retain too little, and the structure may not deliver its intended value. Retain too much, and a severe or volatile loss can place avoidable pressure on surplus. The answer should reflect loss behavior, capital, liquidity, and the organization’s tolerance for risk.
If Reinsurance Is Needed
Premium, membership, coverage, and loss experience change over time. The reinsurance and fronting strategy should be reviewed as the organization develops and market conditions shift.
From Structure to Relationship
Where We Create Value
Preferred Re works as a reinsurance intermediary and advisor. We help guide you in designing and structuring the program, prepare the proposal, identify aligned market partners, and support productive relationships during and after placement.
01
Design the Reinsurance Program
We help assess whether reinsurance is needed, what type of structure may fit, and how much risk the captive should retain. The work begins with the organization’s objectives, surplus, loss profile, and expected development.
02
Prepare and Place the Opportunity
We organize the information markets need, develop a clear proposal, approach appropriate reinsurers, and compare the resulting options. We explain the economics, protection, and obligations behind each alternative.
03
Evaluate Captive Fronting Carriers
When fronting is needed, we identify potential carriers, assess fit, and help negotiate the relationship. We consider appetite, responsibilities, reporting, claims, security expectations, economics, and the partner’s ability to support the program over time.
04
Support the Ongoing Relationship
We can assist with contract language, reinsurance accounting, claims facilitation, and communication among the parties. We can also help identify qualified captive managers, claims administrators, and other specialist providers when additional support is needed.
Why Preferred Re
Experienced Advice, Full Access
Alternative risk programs depend on several parties whose decisions affect one another. Preferred Re has served insurance organizations since 1983 and brings experience across the relationships among captive owners, fronting carriers, reinsurers, and specialist providers.
Clients work directly with experienced professionals who take the time to understand why the program was created, where it needs to go, and what each market option asks in return. We provide clear recommendations customized to your needs.
Questions We Help You Work Through
A productive market strategy begins with a shared understanding of the organization’s objectives, responsibilities, and constraints. We help you examine questions such as:
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What risk should remain within the captive?
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What type and level of reinsurance should be considered?
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How would different structures affect surplus, volatility, and capacity?
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Is a fronting carrier needed for the program?
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Which carriers and reinsurers have the appropriate appetite and capabilities?
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How should coverage, claims, reporting, security, and funds flow connect across agreements?
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What responsibilities belong with the organization, and which require outside support?
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When should the structure be revisited as the program develops?
The answers are rarely isolated. A change in retention can affect capital, pricing, fronting requirements, partner appetite, and the organization’s operating responsibilities. Our role is to help you see those connections before making a decision.
Alternative Risk Insights
Ideas for Stronger Risk Programs
Discuss Your Alternative Risk Strategy
Tell us how your organization is structured, what it needs to protect, and what is changing. We can help you frame the captive reinsurance or fronting decision, compare available paths, and identify a practical next step.