Speaking at Airmic’s Captives Forum, Scott Feltham, group insurance manager at Compass Group, Peter Carter, head of captive & insurance management solutions at WTW, and Dr Henri Winand, CEO/co-founder at AkinovA, highlighted how the challenge of risk financing intangible assets is becoming a focus for captive owners, and how capital markets are looking for a role to play.
“One of the primary challenges relating to intangibles concerns the lack of available data to model loss picks, etc.,” Feltham explained.
He continued, “Consequently, at this current time, and with the arguable exception of cyber risk, there is limited appetite in the insurance market to provide conventional risk transfer solutions to intangible risks.
“The use of a captive as a means through which to incubate certain intangible risks offers a potential solution in terms of collecting data to help illustrate the impact of intangibles.
“Buyers of insurance might then, in time, take this data to the external market with a view to securing a more conventional risk transfer product as a means through which to offer protection against intangible risks.
“There are a number of insurers who are open to…
