Airmic updates captive governance guide

The Association of Insurance and Risk Managers in Industry and Commerce (Airmic) has updated its Captive Governance Guide in response to the increasing size and sophistication of captive insurance companies, as well as the fast changing corporate and regulatory environment they operate in.

Originally published in 2019, in partnership with Aon and updated in 2023, the Guide is designed as a resource for individuals currently serving as directors on captive boards or considering an appointment in the future.

‘A Practical Guide for Independent Non-Executive Directors (iNEDs) on Captive Boards’ also contains valuable information for captive managers and captive owners when considering new appointments to the board. It is also relevant for risk managers who want to re-evaluate the effectiveness of their captive’s board and iNEDs.

“A lot has changed for captives over the past four years,” Julia Graham, Airmic chief executive, said. “The hard insurance market has re-emphasised 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. We hope this update helps iNEDs to understand this new environment and equips them to ask the right questions and fulfil their governance duties effectively.”

Areas covered by the guide include: the benefits of an independent view on the board of a captive; what experience to look for; how to go about appointing an iNED; and best practice in areas like performance measurement and the development of service level agreements; what iNEDs should consider regarding cyber, ESG and D&O.