Many risks that threaten organisations cannot easily be transferred to the conventional insurance market due to capacity constraints, high cost or other factors.

Alternative Risk Transfer describes those products and markets which provide non-conventional solutions, perhaps drawing on the capital markets to assume risk, or utilising structures that overcome deficiencies with traditional insurance.

Critical questions you need to consider

• Do you have risk in your portfolio but cannot get cover or cannot buy at the right price?

• Do you have long-tail liabilities, warranties and other legal risks that you want to transfer but are generally considered to be 'uninsurable'?

• Have you considered capital market instruments to transfer 'uninsurable' risks?

• Do you think that off-balance sheet financing might be more appropriate than conventional insurance?