A new venture is being established on the Island, bringing to the Bermuda market a proprietary product that can help companies insure against losses that fall outside the coverage of a traditional insurance contract.

The product, called Transurance, is sponsored by Risk Innovations, Llc. and Strategic Risk Solutions Inc.

The joint venture?s target audience is Bermuda property insurers that want to sell Transurance to major corporations worldwide, the two sponsors said in a statement on Wednesday.

The product, which is patent pending, is geared to provide supplemental coverage on top of a corporation?s standing insurance cover.

Bruce Thomas, president of Risk Innovations, said Bermuda was the ideal location to set up the new facility ?because it has the capacity, the expertise and the desire to write more property insurance?.

The new company is being formed as a programme administrator, coordinating the marketing, underwriting, administrative and claim payment functions for the Transurance product.

?Costs that are collateral to insurable losses are a huge issue for most corporations,? said Brent Clark, Strategic Risk Solutions managing director.

Mr. Clark could not yesterday be reached for additional information on the product, or formation of a Bermuda company to offer the product.

Transurance is also understood to have found a market in the captive insurance sector. Bermuda is the largest captive domicile worldwide.

Captive insurance is a self-insurance concept used by many large corporations as part of a risk management strategy mitigate the costs of damage from a catastrophe or other types of losses, including costly legal judgments.