Commercial property insurer FM has expanded its suite of alternative risk transfer (ART) solutions, adding parametric insurance, structured risk financing and captive cell arrangements alongside its existing property coverage. The announcement broadens the options available to brokers structuring risk programmes for large commercial clients, at a point when appetite for alternatives to conventional cover is growing across the market.
The three products are designed to complement traditional property insurance rather than replace it. Parametric cover triggers rapid payment once pre-agreed event thresholds are breached, bypassing the claims adjustment process entirely.
Structured risk solutions allow organisations to share in the financial outcomes of their insurance arrangements. Where loss experience is favourable, there is the potential for a premium return, subject to the agreed terms. That mechanism ties insurance expenditure more directly to actual claims performance.
Captive cell arrangements, meanwhile, give organisations access to captive-style risk financing without the cost and administrative burden of establishing a standalone entity.
“Our clients have a wide range of risk management needs and goals,” said Laurel Rudnick, chief underwriting officer at FM. “We’re building solutions that give them more flexibility, greater financial certainty and new ways to strengthen resilience over the long term.”
The expansion comes as organisations continue to seek structural alternatives to conventional property cover, even as commercial insurance pricing eases. According to Aon’s Q1 2026 Global Insurance Market Overview, insureds are maintaining strong interest in ART solutions as a deliberate hedge against future market tightening.
The captive market reflects the same pattern. Marsh’s 2026 captive benchmarking report recorded US$79.1 billion in managed captive premium in 2025, with 118 new formations, up from 92 the prior year. That growth continued despite easing conditions in the commercial market.
Captive cell arrangements reflect that trend. They allow a client to participate in the economics of a captive, retaining underwriting risk and sharing in favourable loss experience, without the governance structure and regulatory obligations of a single-parent vehicle. For clients that have considered but not committed to captive formation, the lower setup threshold changes the calculation.
FM noted that appropriate notifications have been or will be made to regulatory authorities, indicating that product availability may vary by jurisdiction. The company operates more than 50 offices across the Americas, Europe and Asia-Pacific, and frames the expanded ART suite as one component of a broader property risk management approach, combining risk financing with its own engineering and loss prevention capabilities.
