Airmic has partnered with Aon plc to develop a guide for independent non-executive directors (iNEDs), appointed to the boards of captive insurance companies.
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 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.
Captive governance under scrutiny
Commenting on the launch of the guide at the annual conference in Harrogate, Julia Graham, deputy CEO and technical director, Airmic, said: "This practical guide suggests a range of simple but really important steps that can be taken to ensure captive company board oversight is fit for purpose. Captive governance will continue to come under scrutiny as tax authorities maintain a keen interest. However, even without a compelling regulatory reason, this guide makes good business sense as captives grow in sophistication and complexity."
Ann O'Keeffe, chief risk officer, captive & insurance management, Aon, added: "A captive board should collectively have a balance of skills, and a broad range of experience, hence an independent director does not necessarily have to have a risk and insurance background, if this skill is already addressed by the board."
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.
Click here to download a copy of the report.