Positive Relationships Foster Positive Results

GMAC RE Assistant Vice President Anthony Valente says flexibility is
key in the alternative market.

Despite a soft market that’s hindered growth, GMAC RE Assistant Vice President Anthony Valente says the alternative/captive market has remained steady for his company, with fewer turnovers than the traditional market.

BEST’S REVIEW: How is GMAC RE’s business performing?

VALENTE: Our clients are looking for dedicated, long-term relationships--which nicely reflects our own growth philosophy. We’ve come to know these clients very well, and that helps us more effectively price the business, be more responsive to their needs, and mitigate some of the market factors present today. We’ve seen gratifying results from our partnerships with them, and they see it too.

BR: Who is the ideal candidate for a captive?

VALENTE: I’m not sure there is an “ideal” candidate. From our perspective, we work very well with clients who are knowledgeable and experienced with accepting risks. These clients have quite a bit of incentive to keep their losses down. That is a very good thing. Companies with whom we work best have been taking risks for a while--a clear indication that they really understand their business, and how to control and deal with loss. Usually, they’re very quick to let us know what’s going on from a loss perspective. Of course, the sooner we can learn what they see on their horizon, the better we’re able to account for their coming needs.

BR: What are some of the options you bring to such a client?

VALENTE: There are many options, depending on how much risk the client is able and/or willing to assume. We look at a variety of attachment points. We can attach very low if that’s what the client is looking for--if for instance they need surplus relief. We can also attach higher on an account that tends to have some severity. So rather than trading dollars in some of the lower layers, we can work at a higher attachment, or even some type of corridor option. The clients’ particular needs determine our response, and we work hard to offer that flexible approach.

BR: What sort of unique needs will a captive come to you with?

VALENTE: It varies--some are looking for a measure of surplus relief, as I mentioned. Some may be looking to buy down below an excess policy. Here, we can step in and help engineer options to get them to where they need to be.

BR: Do interested parties come to you with any misconceptions?

VALENTE: From time to time. On the alternative/captive side, we tend to service a broader range of risks on lines of business than we would in a traditional marketplace. That’s because we can acquire a better understanding of what the client is doing, so we can do things a little more beyond the norm than we might on the traditional side. But we do work very hard to communicate our capabilities and advantages. Transparency is critical: Right out of the gate, clients need to know if we’re the right fit for them. So we want them to clearly understand what we can bring to their success. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13