Demotech supports launch of captive advisory


A new captive advisory firm has been establish to address the growing needs of captive firms and alternative risk transfer entities.

Alternative Risk Transfer Statistical Solutions (ARTSSI) has retained Demotech to administer its services and duties.

Subscribers to ARTSSI will be able to utilise the data of similar specialty carriers focused on the same niches, in contrast to reliance on the industry averages which are dominated by a small number of large carriers.

ARTSSI has been approved as an advisory organisation in Arizona, Delaware, Kentucky, Nevada, Ohio, South Carolina, Tennessee, Utah and Vermont.  Applications are pending with a number of other state insurance departments.

Joseph Petrelli, president of Demotech, said: “Quite often, captive insurers, risk retention groups, and other alternative risk transfer entities do not retain, evaluate or submit unit statistical data to a statistical reporting organisation. 

“Without premium and loss information collected at the policy level of detail, an overreliance on industry data and averages can occur.  The entity will be forced to develop, review, underwrite, price, reserve, or negotiate terms and prices for reinsurance without access to detailed, business-model specific statistical data.

“Recognising the need for data reflecting the specificity of an entity’s operations and business model, Demotech is pleased to administer ARTSSI to assist captives – including 831(b)s – risk retention groups, self-funded insurance entities, mutual protective associations, public liability insurance pools, and other specialty insurers. 

“By independently collecting and compiling premium, loss and risk management information in policy or claim level detail, under the direction of antitrust counsel, ARTSSI will be the premier mechanism to enable specialty insurers, their managers, actuaries and other service providers to review and analyse credible premium and loss information that is specific to the insurer’s operations.”

Alternative Risk Transfer Statistical Solutions, Demotech, North America, Joseph Petrelli

Captive International