Alternative Risk Management
Smarter Ways to Manage, Finance and Transfer Risk
At Lex Risk Solutions, we believe traditional insurance only covers part of your risk picture. Alternative risk management empowers organisations to go beyond conventional products — giving you more control over retained exposures, strengthening liquidity, and creating bespoke solutions tailored to how your business actually works.
Whether you’re seeking to improve working capital certainty, manage large deductible obligations, or unlock new ways of financing risk, our alternative risk capabilities help you bridge gaps that standard insurance doesn’t always address.
Lex Liquidity Reserve
A strategic reserve designed to protect cash flow and financial stability.
The Lex Liquidity Reserve (LLR) is a purpose‑built solution that enables organisations to fund retained risks — such as large insurance deductibles or bad debt exposures — on terms that better support cash flow and creditworthiness. Rather than provisioning cash up front, LLR allows you to build the reserve over time while maintaining the ability to settle your exposure if a loss occurs.
How It Works
- You agree to fund an agreed reserve over a defined term, typically three years.
- This establishes a fully provisioned reserve from day one that’s assignable and available for risk settlement.
- An insurer provides timing‑risk coverage for a competitive premium.
- All cash remains your company’s asset during the accumulation period.
By reducing demand shocks on cash and substituting costly credit lines or collateral, LLR helps protect your liquidity while enhancing financial flexibility.
Why Alternative Risk Management Matters
Traditional insurance is often designed around standard market products and pricing cycles. But many modern exposures — from large retained risks to unique operational challenges — require more flexible approaches.
Alternative risk management can help you:
- Improve cash flow predictability and capital efficiency
- Reduce reliance on bank credit and collateral requirements
- Customise risk solutions to the specific economics of your organisation
- Close protection gaps where traditional solutions fall short
- Support strategic financing and funding structures that align with your business goals
Our Process
- Risk Review & Gap Analysis
We assess current programmes, retained exposures and financial impacts to understand where traditional insurance may be leaving value on the table. - Forensic Evaluation
We examine risk retentions and liquidity requirements to determine how alternative structures could reduce overall cost and volatility. - Tailored Solution Design
We recommend alternative risk structures — including reserves, financing or risk transfer strategies — that align with your objectives. - Implementation & Ongoing Support
We help implement chosen solutions, monitor performance and adjust instruments as your business evolves.
A Strategic Complement to Insurance
Alternative risk management isn’t a replacement for traditional insurance — it’s a strategic enhancement. By combining financing techniques, capital‑efficient structures, and bespoke risk transfer, we help you protect what matters most, preserve liquidity, and improve risk resilience.
Construction
Build with confidence
Our team has the knowledge and experience to tailor solutions to the needs of even the most complex projects. We can optimise cover for contractors, owners, lenders and other interested parties, assisting clients across all industry sectors, including:
- Civil engineering
- Energy
- Mining
- Petrochemical
- Power
- Process
- Construction Material Damage
- Revenue Protections
- Third Party & General Liability
- Contractor’s Plant & Equipment
- Terrorism
- Inland Transit & Marine Cargo
- Natural CatastropheDirect Insurances & Quota Share
- Excess of Loss Reinsurances
Building Confidence
We have the expertise and drive to find creative solutions within the Lloyd’s, London and European markets via partnerships with our Lloyd’s broker colleagues.
In partnership with our Construction Unit which is London-based and with access to insurance markets worldwide. With complete flexibility, we provide cover for contractors, owners, lenders and all other interested parties on site, with standard, bespoke or broad form wordings engineered to clients’ requirements. We can work on either a project basis (term, non-cancellable, contractor controlled or owner controlled) or an annual basis. Lex Risks believes in a simple approach – plan, execute and deliver.
Services
We can provide a full range of Construction insurance and reinsurance services. Available covers on either a term or annual basis include:
- Material Damage (including Initial Operations & Occupied Property)
- Revenue Protections
- Third Party & General Liability
- Inherent Defects
- Contractors Plant & Equipment
- Marine Cargo & Inland Transit
- Terrorism
- Natural Catastrophe
Global Clients
Our geographic spread of clients is truly global and our account portfolio includes direct corporate clients, independent retail/wholesale intermediaries and reinsurance business, with particular emphasis on the following industry classes:
- Exploration & production companies
- Midstream & downstream operations
- Power generation & utilities
- Drilling contractors & oilfield service companies
- Onshore & offshore construction
We provide a wide range of Property & Casualty (re)insurance for the energy sector including significant expertise in:
- General/Products/Umbrella Liability
- Business Interruption
- Standalone Contingent BI
- Extra Expense
- Cargo (Programmes & Single Project inc. DSU)
- Operators’ Extra Expense/Control of Well
- Construction (inc. DSU)
Contact our team to discuss tailored insurance solutions for your projects.
MFSA Financial Services Register Reference Number (Authorised Person ID) JTCLEX-10570