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Survey Report

Insurance Marketplace Realities 2024 Spring Update – Alternative risk transfer (ART)

May 8, 2024

Alternative risk transfer options continue to be in high demand, especially for clients with challenging risk profiles and/or poor loss experience.
Rate predictions: Alternative risk transfer (ART)
  Trend Range
Structured programs Flat, (arrow pointing left and right) Flat
Parametric nat cat Neutral decrease increase, (arrow pointing up and down) -5% to +10%
Parametric non-cat Neutral increase, (arrows pointing up) Flat
Portfolio programs Limited carrier appetite
Captive stop loss Flat, (arrow pointing left and right) Flat

Parametric solutions

These programs typically address natural catastrophe or weather risks, but also pandemic and elements of cyber risk. Their deployment typically complements a property placement, adding capacity or protecting deductibles or uninsured assets. They are also used to protect against loss of revenue where weather conditions impact productivity. WTW is also often deploying these programs to support lender financing and for government-led climate, environmental and social resilience initiatives.

  • Capacity is increasing in this active insurance market, both annual and multiyear.
  • Earthquake and hurricanes are the most frequently traded perils with increasing interest in wildfire, hail, tornado and general weather perils, such as rainfall and temperature/heat stress.
  • Insurers are deploying parametric capacity to create pro-client differentiating programs.
  • Wider client adoption continues following years of education and loss-proving events.

Structured solutions

  • Deployed where premium to policy limit ratios exceeds 40% annually
  • Activity focused on real estate-driven property programs, and fleet driven auto risks
  • Increasing multiline deployment as reinsurance of captive insurance companies

Other areas of interest

  • Collateral-free fronting for highly creditworthy companies
  • Portfolio/integrated risk programs
  • Capital market-led solutions


Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).


Managing Director, Risk & Analytics (Alternative Risk Transfer Solutions)

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