FERMA speaks out for captive insurance
FERMA has raised its voice to defend the value of captive insurance for European companies and the economy of Europe in the face of challenges from the OECD and European Union.
In order to dispel “substantial misperceptions” about captives, FERMA has published a position paper on captive insurance companies, which it has submitted to the OECD ahead of discussion about the implementation of its Base Erosion and Profit Shifting (BEPS) measures.
Says FERMA President Jo Willaert, “Captives serve an important enterprise risk management role for European business and other organisations. We believe it is important that EU tax authorities preserve these risk financing capacities. This is not about tax, but a fear that the administrative costs of owning a captive will become uneconomic.”
FERMA will now work with its with 21 member associations across Europe to use the position paper to lobby their national tax authorities, who will be responsible for deciding how to implement the BEPS measures.
- Captives serve an economic benefit for Europe by providing additional risk capacity;
- They help reduce risks through more precise loss information;
- European captives are regulated as other insurance entities under Solvency II;
- Captive insurance contracts are genuine risk transfer transactions;
- Many aspects of captive operations, demonstrate their genuine, non-tax functions.
In light of the latest corporate transparency and anti-tax avoidance measures at EU level, FERMA will also reach out to the Commission and Parliament to increase their understanding of the role of captives in the European economy.
18 European risk managers receive their Rimap® accreditation
At the FERMA Seminar held in Malta on October 3 and 4 risk managers had the opportunity to take the exam to obtain the Rimap® certificate issued by the Association.
Eighteen of the 22 risk managers who took the exam in this first edition passed and received their diploma during the seminar’s closing ceremony. They join another 49 risk managers accredited as founder certifications during the 2015 FERMA Forum held in Venice.
The exam consisted in answering one hundred questions written by seven European risk managers, members of five associations belonging to FERMA, and dealing with the pillars of risk management knowledge.
The diplomas were presented during the ceremony led by Michel Dennery, chairman of the Rimap®program, and in his speech the chairman congratulated the successful candidates, saying that “certified risk managers will be perceived in the future as pioneers of the new standard in the profession”.
Aimed at risk management professionals, the European certification program is designed to enhance the prestige of the profession in Europe.
8th edition of the FERMA Survey
The eighth edition of the biennial “European Risk & Insurance Report” published by the Federation of European Risk Management Associations was presented on October 4 during the FERMA Seminar held in Malta.
With data from 634 participants in 21 countries, the study shows the main trends related in the profession, the risk map, and the changes in risk management and insurance practices. In particular, it highlights risk managers’ growing awareness of economic conditions (63 percent vs. 47 percent in 2014) and business continuity disruption, a risk that has just been included in the Top Ten for the first time. Together with political and country instability, organizations view these as the three main risks they face.