Alternative insurance typically refers to non-traditional risk-transfer mechanisms, such as captive insurance companies, risk retention groups, self-insurance funds, or surplus lines markets utilized by corporations, high-net-worth individuals, or specialized industries that cannot find adequate coverage through standard commercial insurance markets. It can also describe emerging parametric insurance products that pay out automatically based on specific event triggers rather than traditional indemnity loss assessments. These alternative frameworks provide customized financial protection for complex risks that standard retail insurance policies completely reject.
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