SRS Altitude LinkedIn Series Episode 7: When to Consider Structured Insurance

Structured insurance is like a custom-fit solution for companies that need a smart balance between self-insurance and risk transfer, especially when they don’t have a captive insurer to rely on.

One common use is when a corporate group adopts a high-deductible insurance program that makes financial sense for the group overall but poses too much financial risk for individual subsidiaries. Structured insurance steps in to manage this disparity, ensuring that each entity can handle its share of the deductible without financial strain, while keeping risk retention at desired levels.

Another application is when a company wants to insure a non-traditional risk but is willing to self-insure a large portion of it. This can be done by spreading the risk over a multi-year period or blending it with more traditional risks to create a diversified portfolio that makes the risk easier to transfer. Structured insurance offers a flexible and strategic way to handle these complex scenarios, keeping the company covered while optimizing costs