Twenty-seven specialized ART programs represented more than $200 million in premiums in 2009, comprising more than one-half of the company's gross written premiums.
RICHFIELD, Ohio -- National Interstate Insurance Co., a provider of captive insurance for the transportation industry, reports significant expansion in its Alternative Risk Transfer (ART) component.
In 2009, the insurance provider added 114 companies to its group captive programs, bringing that total to 384 companies by December 2009. During the year, the company also introduced seven new ART programs, including two for fuel distribution and transport; a specialized liability program for short line and regional railroads; and four large account rental captive programs for clients with $1 million or more in annual insurance premiums. National Interstate's 27 specialized ART programs represented more than $200 million in premiums in 2009.
"We are extremely proud of the continued progress we have made in our ART component," said Dave Michelson, president. "Our success in this component proves that many consumers are ready for an innovative long-term insurance solution that offers greater control, as well as a cost-effective method of sharing risk and reward. We have an extensive list of ART prospects, and remain confident that this year will bring us even more opportunities to launch creative new programs."
"Despite the current economic environment and soft insurance market conditions, customer retention rates in our ART programs remain solid at over 95%," said Terry Phillips, senior vice president. "Companies that join an alternative risk program typically stay in the program, allowing us, and the producer, to gain a long-term customer. We attribute our high customer retention rates to the fact that ART programs foster a partnership philosophy. Members not only have a voice in the financial, loss control, and underwriting decisions of the group, they also have the opportunity to network and interact with other best-in-class operators in their industry."
National Interstate's 27 unique ART programs represent more than half of the company's gross written premiums. The company is rated "A" (Excellent) VIII by A.M. Best Company, and has a 20-year history of strong growth and financial stability.
-- Nicole Schlosser, LCT Magazine