Alternative Risk Transfer

Non-traditional solutions to transfer risk

If your company or business is looking to transfer risk without using traditional business insurance, our Alternative Risk Transfer (ART) solutions may be right for you.

Particularly useful when unique challenges arise, our Alternative Risk Transfer solutions can be customized to the smallest detail to help your business respond to specific and unusual situations.

Our alternative risk transfer teams are based in Bermuda, Liechtenstein, London, New York, Singapore and Zurich.

We provide custom-made alternative risk transfer solutions for specific challenges faced by a wide range of corporate clients from energy, construction, pharmaceutical, technology and many other industries.

Every deal is designed with the client's particular situation in mind, either to complement existing traditional business insurance strategies or to provide a new alternative risk transfer solution. Such solutions may include customized long-term agreements, such as multi-year and multi-line arrangements, and often incorporate solutions from companies across the Allianz Group.

Customized solutions covering a broad range of risks on a multiyear and multi-line basis.

Risk-funded covers and specialized boutique services not effectively available in the traditional market such as:

  • bespoke product tampering and recall
  • extended business interruption
  • loss of profit following business interruption
  • IT system breakdowns
  • contractual penalties (liquidated damages)
  • cost overruns
  • delay in start-up

A pharmaceutical company is interested in managing its product liability exposure in a more efficient manner.

Their risk manager knows that their product liability exposure becomes more complex every year and needs a customized solution to complement their traditional insurance program.

Our Alternative Risk Transfer team puts together a group of experts to understand the business, the risks and the client’s risk transfer goals.

This highly-consultative process results in a custom program that blends risk financing and risk transfer over a multi-year period. This solution gives the pharmaceutical company vertical protection. It also provides:

  • a basket aggregate stop-loss feature for strategic management of retained volatility
  • second event, parametric and dual trigger components
  • market-leading capacity: $50 million per loss, $100 million annual and $150 million over a three-year term
  • coverage and rates are locked in over multiple years
  • stable aggregate limit of liability over the term
  • ability to share in positive outcomes over the term
A global construction company is concerned with runaway premiums around key exposure areas, including cost overruns, liquidated damages and weather delays. They face complex risks on five continents and need an efficient portfolio solution.

A multi-line, multi-year risk financing solution that incorporates a mezzanine structured retention. The custom-built coverage complements the existing deductibles and traditional program, covering workers comp, cost overruns, liquidated damages, weather delay in start-up, professional indemnity and crime.


Get in touch if you'd like more examples of how we can design customized alternative risk transfer solutions.

We offer bespoke reinsurance products such as structured quota shares, structured whole account covers, and structured per-risk covers, across a wide range of classes and geographies, including dislocated areas of the market where capacity is in short supply. We will also consider retroactive products such as loss portfolio transfers.

We serve tens rather than hundreds of clients. For each of these, we provide highly-specialized, boutique reinsurance services often unavailable in the traditional market.

  • specialist reinsurance covers
  • structured quota shares
  • structured whole account covers
  • structured per risk covers
  • retroactive products such as loss portfolio transfers
  • custom reinsurance for individual clients
Protecting your business's finances and operations against unexpected weather effects, our climate solutions can be structured in an insurance or financial form to suit your local regulatory landscape.
These solutions support companies in any sector exposed to temperature, rain, snow, or wind risks, and can also improve creditworthiness and create favorable financing terms. 
  • financial volatility from unexpected weather patterns
  • business interruption (weather related)
  • supply risks (e.g. wind for wind farms, warmth for plant growth, water for hydro-power generation, etc.)
  • operational risk (e.g. snow and ice cancelling flights, low rivers impacting barge traffic, cooling of manufacturing plants, etc.)
  • demand risk (e.g. cold weather affecting battery and coat sales, hot weather increasing beverage sales, etc.)
  • promotional risk (e.g. product sales boosted as a result of risks linked to weather peril)

Weather-dependent power generation

A lack of wind can significantly impair power generation and, potentially, the ability to fulfil financing commitments. Annual wind power generation can deviate by more than 20 percent from the long-term average, resulting in production and earnings volatility.

Allianz's weather solutions can manage short- and long-term risks at a single location or over a portfolio of assets. We cover everything from extreme scenarios for project finance security to utility-scale production, resulting in more stable cash flows from existing and planned operations. Our demand-side weather solutions protect our clients from revenue deterioration and volatility and improve their creditworthiness.

Weather changes and car battery sales

Retail sales are highly sensitive to weather changes, creating volatility in earnings and uncertainty for the retailer. For example, an auto supply company sells more batteries during cold winters than during warmer ones.

By analyzing the correlations between sales and weather, we can provide coverage tailored to specific locations and risk periods. If your company has a national footprint, its total sales can be weighted by actual sales data per market, customer traffic or population. The risk period could be November 1st to April 30th, with emphasis on the first part of the season. Daily or average temperatures might trigger payouts. Such weather protection can guard against revenue deterioration and promote better budgeting.
 The products and services described on this page may not be available in all AGCS locations. Please contact your local office for full information on local product availability.
AGCS prototyped a blockchain-powered captive insurance platform with accelerated workflows for faster and more secure policy and claims management.
We provide a tailored captive solution package to meet your challenges, whether they range from classic insured risks to operational and balance sheet risks.
 Annual costs from routine weather variance can triple those from the headline-grabbing global natural catastrophe losses. What are the links between weather patterns and company performance?
Our Capital Solutions team focuses on the Insurance Linked Securities (ILS) market. They specialize in structuring insurance risks into a form acceptable to capital market investors.

Annual survey identifying business risks

Technology is breeding new threats as well as business models. Traditional risks such as natural catastrophes continue to challenge while other threats such as cyber, neck-and-neck with business interruption at the top of the Allianz Risk Barometer 2019 for the first time, reputational risk, increasing exposure to intangible assets and volatility and consolidation in the corporate environment evolve daily.

Top 3 risks for large-size enterprises

  1. Business interruption (44%) - 2018 rank: 1 (48%)
  2. Cyber incidents (41%) - 2018 rank: 2 (45%)
  3. Natural catastrophes (28%) - 2018 rank: 3 (31%)
Allianz operates as an international insurer on almost every continent. Find Allianz in your own country/region.
With the Allianz network AGCS provides services in over 200 countries and territories.