- How does American Highways differ from all the other agencies?
Experience and expertise make the difference. Established in 1991 and incorporated as American Highways in 1999, our main focus is to meet the insurance needs of transportation operations like yours. We work hand-in-hand with underwriters to better understand how your risk is rated and our customer service staff is available to offer fast and friendly assistance. We’ll work hard to write and service your policy throughout the year.
- What territory do you cover?
Our agents are licensed in all states except Hawaii and Alaska and are backed by a friendly and supportive customer service staff. Highways will provide you with the time and attention that you deserve.
- Which type of coverage is the best for me?
This is a question that one of our professionally trained agents can answer. Every insured has different needs. It’s our job to assess your operation and find tailored coverage to meet your needs. Through on-site visits, historical loss data, driver profiles, operation research and underwriting negotiation, we’ll be able to determine the coverage you need, at an affordable premium.
- What is an ART, or captive, insurance company?
A captive is an insurance company formed specifically to insure the risks of a parent company or a group of companies. The ART policyholder owns or effectively "rents" the insurance company that insures it.
- Are ART programs only for very large companies?
No. Highways offers access to innovative ART programs for trucking and passenger transportation companies of nearly any size. By offering ART programs with low-risk retention levels, even transportation companies with as few as 30 units can comfortably participate in a risk-sharing program.
- I'm currently on a large deductible. What are the advantages and disadvantages of an ART program?
In some respects, a large deductible and an ART program are similar in that the insured is assuming a significant amount of risk. However, with a large deductible, the worst case scenario is unknown and potentially severe. With an ART program, the overriding goal is to stabilize the price of insurance from year to year and, over the long term, recognize a reduced cost of insurance. Further, an ART product typically requires far less collateral than a large deductible plan and provides a cap on the worst-case scenario through an aggregate stop loss feature. Finally, ART participants generally recognize a different level of service and sophistication from their insurance carrier. Most ART participants see dramatic improvements in overall risk management.
- Is Alternative Risk Transfer cheaper than traditional insurance?
When considering an ART product, one must think of the bigger picture - the overall, total cost of insurance over several years. Traditional insurance moves in cycles, and in some years traditional insurance premiums may be "cheaper" than an ART program. However, when looking at the net effective cost of risk financing, the services provided, and actual value received, ART programs are frequently the best long-term solution for larger and more sophisticated clients.
- What are some of the benefits of choosing an ART program?
Perhaps the most significant benefit of choosing an ART product is your ability to better control cost of risk. Unlike the traditional insurance market, premiums in ART program products are less affected by stock market returns, natural disasters and insurance capacity. So, while premiums in the traditional insurance market fluctuate between hard and soft market cycles, the cost of risk when managed through an ART product can be more stable and predictable.
An ART product also gives the insured the ability to reduce cost of risk through the potential return of underwriting profit and investment income. Further, in an ART product, a true partnership is built between the insured and insurance carrier, improving communication, claims outcomes, and satisfaction with the insurance program. Flexible risk retention options, favorable collateral requirements and a built-in aggregate stop loss are also potential benefits of using an ART product.
- What is the difference between a heterogeneous and homogeneous group captive?
The terms simply refer to the class of business that the captive is insuring. A homogeneous captive is one that insures the risk of common classes of business. For example, a homogeneous group captive many insure a collection of trucking companies. A heterogeneous captive, in contrast, might have a trucking company, a mining company and a drywall contractor all sharing risk in the same group captive.
- What is the difference between a single-parent and group captive?
A single-parent captive is an insurance company formed to insure the specific risk of one company (and its subsidiaries), whereas a group captive insures the risks of multiple non-related companies. Both group and single-parent captives may be formed on an owned or rental basis. Highways currently offers access to both group and single-parent programs on a rental basis, as well as group-owned programs.
- What is the difference between an owned and rental captive?
An owned captive requires the parent company to capitalize an insurance company (fund its surplus) and manage all the supporting insurance functions. In a rental captive, the participant "rents" access to surplus, insurance licenses and other critical insurance functions, including claims handling, actuarial and underwriting services, captive management and fronting. Highways currently offers access to both owned and rental programs.
- Why don't more insurance agencies offer ART options to their insureds?
The simple answer is that most don’t understand the programs and, therefore, don’t offer them. Highways has the access and expertise to guide you through the entire process, from understanding ART programs to deciding if they are a better option for your company. Highways works exclusively with National Interstate, a leading provider of ART programs for the trucking and passenger transportation world.