Demotech has been retained by Alternative Risk Transfer Statistical Solutions (ARTSSI), a statistical reporting entity to address the needs of captive insurance providers and alternative risk transfer entities, including risk retention groups.
According to Joseph Petrelli, president of Demotech: "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.”
Demotech is 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 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.
Subscribers to ARTSSI will be positioned to use the data of similar specialty carriers focused on the same niches, rather than relying on the industry averages which are dominated by a small number of larger 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, according to Demotech.
