ART stands for alternative risk transfer. This term refers to all forms of risk transfer that fall outside the scope of the traditional insurance model (traditionally: transfer → Risk by → policyholder to a → Insurer, and, in certain circumstances, the disclosure of parts of the → Risks to reinsurers, and in some cases on to further reinsurers, known as retrocessionaries. Result: pooling of risks and expansion of the capital pool).  In contrast to the traditional insurance model, there are, amongst other things, structured, multi-year, cross-line insurance solutions, securitisations (known as ‘Insurance-Linked Securities’) and transfers of pooled risks to the capital market, as well as various forms of risk retention through→ policyholder (in particular → Captive)

Source reference: See the VDT publication “VDT Article Series, Part 5 | Glossary“ and the source cited there.