Finite Risk Insurance Programme

In a volatile insurance market, organizations may find the market imposing high deductible structures or withdrawing cover completely; leaving the organization facing unbudgeted expenses should losses occur. Guardrisk’s finite risk loss programme allows companies to budget for such losses and enhance cash flow by combining risk retention and risk financing over a given period.

Also known as “spread loss”, the Finite Risk programme matches the organization’s liabilities against assets over an appropriate period of time. Finite Risk insurance programmes can stabilize cash flow, increase insurance cover and reward companies for good risk management.

Typical business risk exposures that can be covered by a Finite Risk insurance programme are:

Deductible layers on asset or liability programmes
Environmental clean-up
Credit risks
Product recall / contamination

Key Benefits

Multi-year insurance programme insulates the buyer from volatility in insurance cycles.
Annual, committed premium payments provide greater certainty in budgeting.
Immediate maximum cover.
Cash flow protection.
Building insurance capacity for future losses.
Broad coverage of a range of risks and perils.
Provides protection against unforeseen and catastrophic events.

Client Profile

Organizations with the following characteristics:

Exposure to risks that are difficult to insure.
Exposure to risks that are not insured, uninsurable in conventional insurance markets or too expensive to insure in the conventional market.
High limits for which capacity is not available in the insurance market.
Strong balance sheet with high risk retention capability.
Exposures with moderate severity and low frequency profiles.

Finite Risk Insurance Programmes

Typical business risk exposures that can be covered by a Finite Risk insurance programme are:

Key Benefits

Client Profile

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