THE ARTEX ADVANTAGE
YOU BECOME THE ARCHITECT
Artex is a vehicle that allows you to gain greater control over your risk
management program. You become the architect in building a dynamic and
unique program designed to cut your cost of risk. Artex gives you the power to
unbundle each component of your traditional program in order to construct a customized
risk financing arrangement designed to support your business and fiscal objectives.
ARTEX PUTS YOU IN CONTROL
With traditional insurance programs, you are subject to the carrier's appetite for
risk and the terms and conditions they impose. They determine your premium by assessing
your potential losses - based to a large extent on industry-wide experience - and adding the
portion of their operating costs they wish you to bear. Historically, most insurers have had
a poor track record of predicting losses accurately and running their businesses efficiently.
They have given you minimal control over the quality and level of service provided.
ARTEX TAKES A DIFFERENT APPROACH
Artex enables you to customize a risk financing program that matches your risk tolerance and
strategic goals and can be easily adapted to address your changing needs. Artex can arrange the specific claims
management, loss control, policy issuance and reinsurance services you require, so your operating
expenses are contained and clearly defined. Your remaining funds are segregated and invested,
where they can grow to meet potential insured losses. Depending upon the types of coverage incorporated
in your program, the opportunity for investment income can be significant. And unlike traditional
insurance policies, that investment income is yours. Click on this
Ultimate Profit Illustration link to see the impact of loss emergence patterns on the
development of investment income.
NOT JUST ANOTHER ALTERNATIVE
Because of Artex' unique structure, you may also gain certain tax and regulatory advantages that
aren't available through other alternative market mechanisms. With optimum tax treatment and true
operating efficiency, Artex can give you greater control over your net cost of risk.
AN EVOLUTIONARY PROCESS
Until recently, the kind of cost control Artex offers you has only been available to the largest of companies.
For other entites, the amount of time and expense it took to put together complex program structures simply
couldn't be justified. So, when we designed Artex, we sought to simplify things. In the process, we soon discovered
that the simplest solutions are often the best.
THE ADVANTAGES OF A CAPTIVE WITHOUT THE HEADACHES
Through Artex, you gain access to a highly-efficient risk financing vehicle. More importantly, you don't have to enter the
insurance business by forming your own offshore captive. Artex delivers you all the benefits of owning a captive insurance
company - such as greater control over your service costs; tailored coverages, terms and conditions; and greater cash flow - without most of the disadvantages - like
capitalization requirements, Related Person Insurance Income (RPII) taxes, regulatory headaches and offshore board meetings.
EASY ENTRY, EASY EXIT
Artex is a vehicle that simulates the benefits of captive ownership. We provide you with domestic fronting paper from an approved, "A"
rated insurer and place your reinsurance through approved, "A" rated reinsurers. And the longer you stay in Artex, the greater your
potential for investment profits. Artex guarantees the return of underwriting profit and investment income through a
supplemental Agreement. If you decide to discontinue your program, termination is as easy as a non-renewal. Easy entry, easy exit.
PEACE OF MIND
With Artex handling your risk management needs, you can turn your attention to running your business, confident in the knowledge that
your insurance dollars are working for you.
BUILDING A STRATEGY FOR THE FUTURE
Now is the time for you to make a strategic assessment of your long-range risk financing needs. With Artex, you replace the short-term lure
of cheaper insurance rates with the satisfaction of building a flexible, long-term strategy for reducing your net cost of risk. Once you make the
decision to measure your program's financial performance by factors other than insurance rate fluctuation, you remove yourself from the annual
price-bidding merry-go-round so endemic within the traditional insurance marketplace.
THE BEST OF BOTH WORLDS
Artex offers you the best of both worlds. You have the opportunity to build long-term value, while retaining the flexibility to adapt your
program to address your company's ever-changing financial and risk management needs.
THE CHOICE IS YOURS
With artex, your program is priced according to your loss experience alone. You gain the flexibility to expand or adapt your
coverages to accommodate those risk financing objectives that are the most important to you. As your potential investment and underwriting
profits begin to emerge, you also have the freedom to direct those funds towad a variety of financial planning initiatives. In this way, Artex can become part of
an overall financial strategy that goes well beyond property/casualty insurance.
SIMPLE, FLEXIBLE, POWERFUL
If you are interested in a simple, flexible way to gain better control over your risk managment program, just talk to our representative, who will
be happy to more fully explain how you can put thepower of Artex to work for you.
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