Risk Retention Pooling
Our Commercial Programs offer businesses the opportunity to participate in risk retention pooling, a collaborative approach to managing insurance costs and risks. By joining a pool with like-minded businesses, you can benefit from shared resources, reduced volatility, and potentially lower premiums.
Key features:
- Access to a diversified risk pool
- Shared administrative and operational costs
- Opportunities for profit sharing based on pool performance
With Nova, you get insurance that understands your profession and provides the peace of mind you need to focus on your clients.
How it works
In our Risk Retention pooling model, multiple businesses contribute to a shared
insurance program within our SPC structure. Each pool of participants have their own segregated
portfolio, ensuring that their assets and liabilities are protected. The pool operates under
a common underwriting and pricing framework, allowing for cost efficiencies and risk
diversification.
Businesses join the pool based on shared risk profiles or industry sectors
Premiums are collected and managed collectively
Claims are handled through the pool, with losses shared according to predefined rules
Profits or savings are distributed back to participants based on performance
Nova manages the entire process, from setup to ongoing administration, ensuring a
seamless experience for all participants.
Fronting structures
For businesses that require a fronting insurer to meet regulatory or market requirements, our Commercial Programs includes the arrangement and management of fronting structures. We partner with reputable fronting insurers to provide policy issuance, claims handling, and compliance support.
Benefits include:
- Access to licensed insurers in your target markets
- Simplified compliance with local regulations
- Integrated claims management for efficiency
With Nova, you can focus on your business while we handle the complexities of fronting arrangements.
Risk shifting mechanism
Central to our Commercial Programs is the risk shifting mechanism, which allows businesses to transfer specific risks to the pool while retaining others. This mechanism
is designed to optimize your risk profile, balancing cost savings with risk exposure.
Our approach includes:
- Customizable risk retention levels
- Clear rules for risk sharing and loss allocation
- Transparent reporting and performance tracking
By participating in our risk pooling program, you can achieve a more stable and predictable insurance outcome, tailored to your business needs.
