The use of first party cell captives as a risk management mechanism for corporates
Alfons van der Vyver Executive Head: Risk Finance Solutions at Centriq Insurance Company Limited is talking about a very interesting concept of cell captives, but more particular about first party cell captives, which is a whole different animal by itself.
"Risk finance in the insurance industry is a broad concept that encompasses management and risk management techniques and that is offered through various products and structuring solutions, of which a a first party cell captive for corporates is."
"A company's financial position, its balance sheet, does not necessarily permit it to carry unlimited or unmitigated exposure. There might be a difference between what the board sees as their appetite to take a risk and what they can actually carry or what the cost would be to lay off that risk. This type of structure facilitates striking that balance, hitting that sweet spot between these trade offs. "
Watch our discussion with Alfons below: