Download - ART “Music to our Ears” · Greater Washington says • Members of the federation first discovered the hack Aug. 4, when its information-technology contractor detected suspicious

©2019 ARTHUR J. GALLAGHER & CO.

ART “Music to our Ears”Peter A. Persuitti, Global Managing Director

Religious | Nonprofit Practices September 2020

2©2020 ARTHUR J. GALLAGHER & CO. | AJG.COM

Collaboration is Critical | Networking is Empowering

• “Common Ground” event for 17 years. Co-Creation Insurance Board CEO and Gallagher’s Religious Practice

• “Convocation”(raise over $280K)

Kudos to You…


• Pricing

• Availability

• Limits

P&C Insurance Pricing Up Sharply

6 Page Document with

Link to more generic

insurance overview

version

©2018 ARTHUR J. GALLAGHER & CO. | AJG.COM

AGENDA

• What is ART?

• Why is it important now?

• How does a NGO evaluate the potential of ART?

Peter Persuitti


• “Alternative Risk Transfer”

• “Alternative” no longer accurate, given the number of

organizations resorting to self-insurance strategies (>50%)

• Risk Financing Strategy vs. Insurance Buying Dependency

• Profit Center mindset – Loss Fund

• “Unbundling” Claims and Risk Management Services

• Data Analytics

What is ART? Traditional Insurance ART


• Depending on size of your P&C “TCOR” (Total Cost of Risk)

• Master Policy | Captive Vehicles

– Alone “Single Parent”

– With a Group (Combinable, Homogeneous)

– Oversight | Regulatory

– Protection of Assets

Alone or with a Group

Master Policy Program

Captive

Rent-a-Captive

Protected Cell Captive

Trust

Risk Retention Group

Risk Purchasing Group


• Focus singularly on P&C

• Include both large expenses:

– P&C deductibles or SIRs, uninsurable

– H&W stop loss

P&C or P&C | H&W


• Portfolio – All Key Lines of Coverage

• Loss Fund for funding all SIRs (Self-Insured Retentions and Uninsured)

– Cash Flow Benefit

– Five Year pay out for policy year (short tail, long tail coverages)

– Incident, Claims management & control

• One Reinsurer to provide coverage up to First Million (or more)

• Excess “Follow Form” specialized carriers above

– Property (per occurrence) | Loss Limit based on PML

– Liability | Loss Limit (and sublimits on SAM, EPLI, D&O, Auto)

– WC Statutory

– Crime

Unique P&C “Risk Financing”

Approach

ALA

All-Lines Aggregate

ART

Alternative Risk Transfer


NGO | Group Loss Fund

Broad, Manuscripted

Form

Follow Underlying

Broad Form

ALA

All-Lines Aggregate

ART

Alternative Risk Transfer

All-Lines Aggregate


The Math of ART – A Science

Reduce

Fixed

Costs

Improve

Cash Flow


• It is a proven methodology for nonprofits

• Brings Stability – Insurance marketplace is hard and unpredictable

• Reduced TCOR - Redirect dollars to mission versus recurring fixed costs

• You Control

– Data (RMIS System through TPA)

– Outcomes

– Reputation

– Costs & Profits

Why is ART important now?


• Single Organization – $ Spend

– Ownership Mindset – Profit Center

– Coverages

– Exposures

– TCOR

• Group – Likeminded organizations

– Member-owned Program

– Leverage premium

– Spread of Risk

– Collaboration

– Build Surplus to take more risk, provide returns

How does a NGO evaluate the

potential of ART?


• Cyber………………………………

• Fiduciary

• Foreign

• Volunteer Accident

This is not a coverage in the ART

portfolio (at least now)

• $7.5 million stolen in hack, Jewish Federation of

Greater Washington says

• Members of the federation first discovered the

hack Aug. 4, when its information-technology

contractor detected suspicious activity in an

employee's email account. They said authorities

believe the hackers first gained access to its

system in early summer.

©2020 ARTHUR J. GALLAGHER & CO.

ART “Music to our Ears”Peter A. Persuitti, Global Managing Director

Religious | Nonprofit Practices September 2020

Thank you and good luck with your

networking and collaboration

Thank You

Grazie

Mulțumesc

Dankie

Thank You

Grazie

Ngiyabonga

Takk skal du ha

Gratias tibi

Download - ART “Music to our Ears” · Greater Washington says • Members of the federation first discovered the hack Aug. 4, when its information-technology contractor detected suspicious

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