Statistical Reporting Service for Alternative Risk Transfer Entities
Columbus, Ohio, February 3, 2015: With the increased use of captive insurance providers and alternative risk transfer entities, including risk retention groups, Alternative Risk Transfer Statistical Solutions, Inc. (ARTSSI) has been created to provide a cost-effective, business-model specific, statistical reporting entity to address the needs of such entities. ARTSSI has retained Demotech, Inc. to administer its services and duties.
According to Joseph L. 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 organization. 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.
“Recognizing 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 analyze credible premium and loss information that is specific to the insurer’s operations. Subscribers to ARTSSI will be positioned to utilize 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 larger carriers.”
ARTSSI has been approved as an advisory organization in Arizona, Delaware, Kentucky, Nevada, Ohio, South Carolina, Tennessee, Utah and Vermont. Applications are pending with a number of other state insurance departments.
To learn more about ARTSSI or to subscribe to its services, please contact jpetrelli@demotech.com
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Since 1985, Demotech, Inc. has been serving the insurance industry by providing actuarial consulting as well as accurate and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies and Title underwriters. FSRs are a leading indicator of the financial stability of an insurer. Our rating process provides an objective baseline as well as insight as to the financial stability of an insurer. Demotech levels the playing field by offering FSRs to insurers of all sizes. Visit www.demotech.com for more information.
About ARTSSI
ARTSSI is an advisory organization organized to collect business-model specific, premium and loss information to address the needs of alternative risk transfer entities.