More Captives Embrace ERM Programs
As part of its Captive Insurance Companies Association (CICA) coverage, CAPTIVE INTERNATIONAL recently reported that “An increasing number of captives are using their retained earnings to launch new enterprise risk management (ERM) programmes.”
CAPTIVE INTERNATIONAL interviewed NATE Reznicek, ACI of CIC Services, LLC, where he serves as Director of Operations. He spoke to Captive International leading up to the CICA 2018 International Conference in Scottsdale, Arizona.
According to CAPTIVE INTERNATIONAL:
“Captives are not a ‘set it and forget it’ endeavour,” said Reznicek. “The best captives change to mirror the changes of the underlying insured’s operations and exposures. The growth of reserves should be continually evaluated and utilised to their fullest in order to match the risk appetite of the captive owner with emerging and profitable risks.”
ERM is the discipline by which an organisation – regardless of industry – manages risks and seizes opportunities for the purposes of increasing its short and long-term value to its stakeholders.
Reznicek explained that CIC Services has carried out a number of case studies that show that captives are developing and implementing a strategic and profitable approach to take on more risk through these ERM programmes.
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