Risk Transfer
Shifting the financial consequences of a risk from your balance sheet to an insurer for a fixed premium.
Risk transfer is the practice of moving the financial consequences of a risk — here, fraud loss — from your own balance sheet to an insurer in exchange for a fixed premium.
Why it matters for fraud
Fraud is inevitable and detection is probabilistic, so some loss always remains. Risk transfer makes the financial outcome of that residual certain: instead of an unpredictable write-off, you pay a premium and file claims.
The capital angle
Transferring fraud risk frees the capital you held against loss volatility. Read the full case in Fraud as an Insurable Risk and see Tier 1 capital.
Denial-Free Claims
A claims process in which covered losses are reimbursed without the usual denial friction, typically within a fixed window.
Identity Fraud Loss Insurance
A financial-services product that indemnifies a business against monetary losses from identity fraud, transferring that liability to an insurer for a fixed premium.
MGA (Managing General Agent)
An entity that underwrites and administers insurance on behalf of insurers, with delegated authority to price and bind coverage.
Reinsurance-Backed Protection
Coverage whose claims-paying capacity is backed by rated reinsurers, giving it insurance-grade financial strength.