New Statistical Reporting Organization Formed To Serve ART Entities

Executives, managers, and boards of captives, risk retention groups, and self-insured entities are often frustrated in their decision-making process by the lack of the specific statistical data they need. Most often they rely on industry data to underwrite, price, reserve, and negotiate terms for reinsurance. A new organization, Alternative Risk Transfer Statistical Solutions, Inc. (ARTSSI), has been formed as an advisory organization to collect business-model-specific premium and loss information to address the needs of alternative risk transfer entities.

“By independently collecting and compiling premium, loss and risk management information in policy or claim level detail, under the direction of antitrust counsel, ARTSSI will ... enable specialty insurers, their managers, actuaries and other service providers to review and analyze credible premium and loss information that is specific to the insurer’s operations," said Joseph L. Petrelli, president of Demotech, in a press release. "Subscribers to ARTSSI will be positioned to utilize the data of similar specialty carriers focused on the same niches, in contrast to reliance on the industry averages which are dominated by a small number of larger carriers.”

ARTSSI has already been approved as an advisory organization in Arizona, Delaware, Kentucky, Nevada, Ohio, South Carolina, Tennessee, Utah, and Vermont. Applications are pending with a number of other state insurance departments.

The organization plans to serve specialty insurers, risk retention groups, captive insurers (including 831(b) captives), self-funded insurance entities, mutual protective associations, and public entity pools.

ARTSSI is a separate legal entity, developed and administered by Demotech, Inc. Subscriber fees for the organization are based on a percentage of premiums.