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How sidecars are revolutionizing risk management and fostering collaboration in insurance

Sidecar Race 2 during the WorldSBK Motul Dutch Round at the TT Circuit Assen on April 24, 2022 in Assen, Netherlands
Photo: Andre Weening/BSR Agency/Getty Images

Sidecars enable insurers to share underwriting risks.

In the ever-evolving world of insurance, risk-sharing mechanisms such as sidecars are gaining prominence as a way to enhance financial stability and boost investor returns.

Operating at the intersection of insurance and capital markets, sidecars enable insurers to share their underwriting risks with third-party investors, thus achieving a more balanced