Profit Sharing
Credit providers in the retail and wholesale markets can use Old Mutual Alternative Risk Transfer (OMART), Old Mutual's cell-captive insurance company, to protect themselves against bad debt in the event of the death, disability or retrenchment of their clients.
In addition they can benefit from a share in any potential underwriting profits.
Features & Benefits
- A company-owned insurance cell that underwrites the credit risk.
- Cover is determined by the company's needs.
- A profit-sharing mechanism.
- Access to insurance and reinsurance expertise.
- An optimal balance between risk retention & risk transfer.
Should companies not wish to enter into a cell captive arrangement, but still want to share in insurance profits, profit sharing using the OMLACSA license provides an alternative to self-insurance.
This limits the company’s downside risk. The insurer will carry all the downside risk, but company can share in profits from any better-than-expected claims experience.
What is Old Mutual Alternative Risk Transfer (OMART)
OMART is a long-term insurance license administered by Old Mutual. It was specifically created to provide tailored structured insurance packages through a cell captive arrangement.
Cell captive means that your company actually uses a portion (cell) of the Old Mutual license to conduct elements of your business. It enables your company to conduct long-term insurance business that would otherwise require you to register and administer an additional license.