Airmic, the UK association of risk and insurance professionals, has released two new guides focusing on risk and managing risk, and captives and understanding captives.
The guides, which were released at the association’s Airmic Fest event, are part of the relaunched series of Airmic’s Explained guides, which provide guidance on a range of risk and insurance subjects at an introductory level.
The risk guide will provide knowledge and guidance for risk professionals and others with an interest in managing risk.
It summarises current approaches to risk management and explains how organisations can help to address the effects of uncertainty.
In addition, it focuses on key principles of risk management and includes practical examples where appropriate.
The captives guide has been created to support insurance and risk professionals and others with an interest in the subject in their understanding of captives and their value as part of a portfolio of risk financing solutions.
Airmic explained captive insurance has become an increasingly prominent risk control mechanism in the strategic planning of many organisations.
The guide will take risk financing professionals through the life cycle of captives, from initial concept through to their benefits and uses, and finally to exit strategies.
It includes case studies, acknowledging the effective use of captives and the regulatory framework and governance behind them.
The guide will also highlight emerging trends and explain why there is a strategic case for captives in light of emerging risks including those associated with cyber and the recent COVID-19 pandemic.
Commenting on the relaunch of the guide, Richard Cutcher, captive ambassador at Airmic, said: “While captives are valuable risk management and risk financing tools throughout market cycles, there is no doubt that rising rates and decreasing capacity have pushed captives to the top of the agenda once again.”
“Existing captive owners are taking on higher retentions and writing new lines, while new organisations are considering forming a captive or cell for the first time.”
“For those new to the risk management profession, or for those new to insurance procurement, this Explained Guide provides all you need to know for a comprehensive introduction on why captives exist, how they are used and what is required to establish and operate one, Cutcher added”.
This year’s Airmic Fest, which is being hosted virtually, starts today and will run until 24 September.
In the latest issue of Captive Insurance Times, Airmic CEO John Ludlow discusses COVID-19 pandemic effects, what the association has been working on and what attendees can expect from this year’s virtual conference.
