Generally, companies that have demonstrated the most success have possessed the vision and intelligence to transform the challenges, which both they and their customers face, into distinct opportunities. USA Risk Group, for example, the leading independent alternative market service provider in the nation, has formed and successfully managed a variety of captives, risk retention groups and other alternative market insurance structures. Stability, underwriting expertise, specialty coverages, effective loss control management and the use of Internet technology have all contributed to its success in handling captives, from health care to trucking to the rental industry. What these companies share is a sound business strategy that includes a partnership philosophy, a commitment to innovation, an entrepreneurial attitude, demonstrated risk-management expertise and an ability to make intelligent business decisions. The Value of Strategic Alliances Risk sharing is actually a long-term strategic direction chosen by top management who are looking for an effective way to control costs, increase predictability of cash flows, leverage strategic partnerships, and at the same time, receive direct rewards for controlling losses.
Some companies choose to go it alone.
But for many, the wisest route is usually to choose a partner experienced in the realm of risk management. The costs associated with starting up a reinsurance company, the inconvenience of tying up assets that could be put to better purpose, and the accompanying diversion of human energy and time away from the core business, are reasons enough to forge an alliance that can alleviate those elements of the captive equation. The important factor is that the strategic partner has the financial stability and the expertise, both in risk sharing and in your industry, to ensure a smooth entry into the captive market. In the mortgage industry today, challenges ranging from increased competition and emerging technology, to consolidation and deregulation, require companies to look toward innovative solutions for increasing or maintaining their margins. Technology, including the Internet, is forcing the industry to change.