“For nearly 15 years, we’ve established an expertise in alternative risk transfer business we believe is second to none in our industry,” says Chris Mikolay, commercial lines marketing manager. While National Interstate originally began as a bus insurer, today it maintains leadership positions in a variety of wheels-related niches—and a whole lot more.

Mikolay says, “We like to be the big fish in a lot of small ponds. We insure tough classes of business other carriers shy away from.” Today, those specialty classes include, as he says, “wheels-based niches, plus a number of markets outside of the transportation industry.”

National Interstate’s primary programs include products for passenger transportation and a host of trucking risks. Additionally, the company writes programs where auto liability shares the spotlight with other coverages. “The energy industry is one example,” says Dan Keenan, business development manager. “Shortline railroads is another,” he adds.

More than half of the company’s approximately $350 million gross written premiums in 2009 came from alternative risk programs. “With around 30 different captive programs we have built a reputation of extensive expertise,” says Mikolay. “Our experience ranges from agency captives, where we partner with people we’ve gotten to know through Target Markets [Program Administrators Association], for instance, to large account rental captives, group rental captives, and member-owned captives.

“We have tremendous breadth and depth in alternative risk,” Mikolay adds. He’s proud of National Interstate’s record in the arena, but suspects many, including agency partners, are unaware of everything the company does.

For example, National Interstate operates a Large Account Rental Captive (LARC) program. “LARCs were designed to provide larger insureds all of the benefits of having their own captive insurance company, but without the need to capitalize it,” he explains. The program, he adds, has been quite successful.

The company offers several other market specific group captives—including ones for beverage distributors, railroads, and intermodal operators. “Not only can our agency partners access these programs,” Keenan says, “but if the broker has certain specialization, we can create an agency captive program designed specifically for them.”

National Interstate’s claims expertise is a key differentiator. “Our claims professionals are real specialists,” Mikolay adds. “We have experience in handling difficult claims. We handle them very proactively for our agency and insured partners, which provides a lot of value and can save them money.” Similar expertise exists throughout the company, including loss control, he notes.

The company also supports its customers with advanced technologies. “For example, through a customer loyalty program we assist insureds in obtaining accident event recorder technology,” Mikolay explains. The technology monitors driving and records circumstances surrounding accidents, and improves driver behavior. “It can really reduce claims and acts as an irrefutable witness when the driver is not at fault.”

Adds Keenan, “Our product management organizational structure allows easy access to senior management, and we provide a single point of contact for quick answers to questions.”

Target Markets Program Administrators Association has helped National Interstate expand beyond wheels business. “It has led us to best-in-class program administrators, who helped us grow in various niches,” Keenan notes. “It has helped us identify new program opportunities, including those that can benefit from our alternative risk expertise, and to meet with many of our existing program partners.”

According to Mikolay, more initiatives are in the works. “We have a healthy pipeline of programs, including some that are very non-wheels based,” he explains. “We are wheels experts, but at the same time we are alternative risk experts. We’re fast and creative, and will always be launching new programs.”