From: Commercial Risk
Baron says risk managers need to stress core risk management role
Captives will continue to gain traction in Asia and worldwide as the message that they are critical risk management tools, rather than simple risk financing and cost-saving vehicles, is becoming understood in the wider business, financial and regulatory community, according to Franck Baron, founder of the recently created Captive Insurance Association Singapore (CIA).
The success of the French risk management association Amrae in convincing the French Treasury to introduce more captive-friendly rules and promote an ‘onshore’ captive community has helped “demystify” the captive concept, added Baron, also president of the International Federation of Risk & Insurance Management Associations (Ifrima) and board member of the Pan Asia Risk & Insurance Management Association (Parima).
Italy is following suit and the UK risk and insurance management community is hoping to recommence talks with the UK government about rule changes to allow for onshore captives too by year-end, it was reported at the recent Global Programmes Europe event in London, organised by Commercial Risk and attended by Baron as a speaker.
The risk manager for International SOS said that the same demystifying message needs to be spread in Asia too as Asian companies seek more effective ways of managing and transferring their risks in an increasingly uncertain world and as interest in captives is rising.
