Pierre Perrenoud, board member of various captives, SIRCA, Swiss Insurance and Reinsurance Captive Association shares his views on the risks and advantages of captive solutions

Pierre Perrenoud, board member of various captives, SIRCA, Swiss Insurance and the Reinsurance Captive Association, is speaking at the Risk-!n conference  on May 25 in Switzerland.

Ahead of his session, Strategic Risk caught up with him to find out what he would be discussing and why risk managers should attend.

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What makes captives an essential tool for CFOs?

A reinsurance captive is an essential tool in the management of risk financing. It optimises the cost of insurable risks and makes it possible to cover risks that are normally excluded from insurance policies.

What are the main benefits of a captive that risk managers should consider?

Captives achieve a strong reduction in insurance costs, smooth out loss ratios and accumulate funds that can be lent back to the shareholder.

Risk managers can control the whole chain of insurance and reinsurance, particularly with respect to policy conditions, premium rates and claim management.

What are the key risks that Risk Managers should be aware of when it comes to captives?

Governance is an important issue, particularly in Europe.

Solvency rules require a deep knowledge of underwriting, reinsurance techniques and investment management.

The main risk for risk managers is a lack of loss prevention measures at the source that could cause significant losses and difficulties with the reinsurance market.

ESG issues play an increasing role.

What are some of the things attendees will learn at your Risk-!n session?

Risk managers will understand the parameters of captive management and how to beat the so-called insurance/reinsurance cycles.

To find out more about the conference, or to register to attend, visit the Risk-!n website.

Pierre-Claude Perrenoud worked for 35 years with Swiss Re, in various positions: responsible for Latin America, responsible for overseas (Latin America, Africa, Asia and Captive companies), then as a member of group management. Since his retirement, he has been on the Board of Directors of many insurance and reinsurance captives in Europe, the U.S., Latin America and Asia.