Top five myths of the alternative market

One of the single most influential changes in the insurance industry over the past twenty-five years has been the emergence and growth of the alternative market. Leading experts estimate that this segment represents more than one-third of the U.S. commercial property/casualty market, approaching $70 billion annually.

What has proven particularly interesting to those of us who have spent a significant portion of our careers serving the alternative market is the number of routinely (and strongly!) held misconceptions that exist regarding such an important and influential segment of the business. In the interest of enlightening those new to this market and stimulating debate among those with a bit more experience, I humbly submit my personal collection of hyperbole, misrepresentation, distortion and outright confusion that is far too commonplace.

MYTH #1

"OF COURSE EVERYONE SHARES A COMMON UNDERSTANDING OF THE TERM ALTERNATIVE MARKET!"

I constantly witness situations when people are introduced as alternative market professionals, only to be met with those strange quizzical looks heretofore reserved for actuaries. I have come to the conclusion that it has much less to io with personality type and much more to do with a general lack of clarity regarding a comnon understanding of the term.