Alternative risk financing facilities

{
  "id": "MLC-T-INS-003582",
  "term": "Alternative risk financing facilities",
  "field": "Insurance and risk management",
  "definition": "The specific entities and structures, such as captive insurers or risk retention groups, that organizations use to fund losses outside of the conventional insurance market. These facilities are designed to meet unique risk profiles that are difficult or expensive to insure commercially, providing a formal mechanism for self-funding potential losses. The creation and operation of these facilities are governed by specific domiciliary regulations, such as those in Vermont, Bermuda, or the Cayman Islands.",
  "url": "https://mlchart.com/terminology/insurance/alternative-risk-financing-facilities/"
}