Airmic Updates Its Captive Governance Guide To Address Captive Changes
June 23, 2023
Responding to the increasing size and sophistication of captive insurance companies as well as the rapidly changing corporate and regulatory environment in which they operate, Airmic, the UK risk management association, has updated its Captive Governance Guide.
Originally published in 2019 in partnership with Aon plc and updated in 2023, the Airmic guide is designed as a resource for individuals serving on captive boards or considering doing so in the future.
Airmic's A Practical Guide for Independent Non-Executive Directors on Captive Boards also contains information for captive managers and captive owners when considering new board appointments. It's also relevant for risk managers looking to reevaluate the effectiveness of captive boards and their independent nonexecutive directors (iNEDs), an Airmic statement said.
"A lot has changed for captives over the past four years," Julia Graham, Airmic CEO, said in the statement. "The hard insurance market has re-emphasized the relevance and value of captives, seeing them grow in premium size and enter new business lines.
"Trends in ESG, cyber and D&O have also presented new challenges and questions for captive boards to get to grips with," Ms. Graham said. "We hope this update helps iNEDs to understand this new environment and equips them to ask the right questions and fulfill their governance duties effectively."
Among the areas addressed in the guide are the benefits of an independent view on a captive board, what experience to look for, how to appoint an iNED, and best practices in areas such as performance management and the development of service-level agreements. The guide also addresses what iNEDs should consider regarding cyber risk; environmental, social, and governance issues; and directors and officers liability.
June 23, 2023