A packed-out conference for the inaugural GIIA and Airmic Conference enjoyed a variety of panel sessions ranging from disaster relief financing to the emergence of parametric insurance.
Titled 'Positioning for the Future,' the conference heard from Airmic's Chief Executive Julia Graham, Guernsey politician Deputy Mark Helyar, General Sir Richard Shirreff, KBE, CBE, and other high calibre speakers. Read our key takeaways from the panel sessions below.
Public and private sector crossover is needed for disaster relief financing
Panellists Petra Demarin, Emma Karhan, Mike Pickard, and moderator Paul Sykes outlined the significant protection gaps in global economic losses and humanitarian response, particularly in remote and off-grid communities.
Speakers emphasised the need for insurance solutions and government intervention, as well as leaning on the private sector as a source of knowledge, skills, tools and expertise.
The importance of captives in providing risk management solutions for humanitarian organisations was also highlighted, as well as a robust framework and certainty around regulatory approval times, which is offered by Guernsey's regulatory environment.
Parametric insurance is moving into the mainstream
The panel on parametric insurance, comprising Dr Raveem Ismail, Nicky Payne, and Paul Ramiz, discussed and dispelled some of the common myths around parametric insurance and ran through a range of examples of parametric products that have been utilised for captives.
It was also discussed that a blended reinsurance programme combining parametric with standard indemnity cover is a good way of beginning to utilise parametric products – this is particularly pertinent in hard market conditions. It was further noted that increased technology can enable more parametric products, particularly when combined with captives which have a high level of visibility of their own risks. Speakers also noted that parametric solutions go hand in hand with climate change risks, given that more tailored solutions can be structured.
Patience and peer reviews are key in claims
Colin Taylor, Phil Thrower, and Charles Scott led the session on claims, which mixed examples of significant claims with the lessons to be learned. The overriding message was that claims are inevitable due to human nature, but systems, controls and common sense can reduce the number and severity. Taking time over important actions and decisions and peer review was emphasised.
Guernsey remains top of the food chain for innovation in insurance
In a session moderated by Nick Wild, Guernsey Advocates Kate Storey and Richard Sharp provided a description of the options for corporate structures that support risk transfer and are available under Guernsey law.
As the birthplace of the Protected Cell Company (PCC) and Incorporated Cell Company (ICC), Guernsey's strengths were explored in areas such as risk financing, cost savings, and flexible regulatory and corporate regimes.
The session saw Kate and Richard discuss the strengths of Guernsey PCCs, conversions, migrations, portability of captive structures, exits and winding ups, all against the backdrop of Guernsey's comprehensive Company Law.
Guernsey Finance UK Insurance Representative William Lewis said the event was fantastic and made it possible to catch up with existing industry contacts, as well as establish new ones, from both on and off-island.
He said: "There was a lot of food for thought for both risk and captive managers.
"Guernsey's decades of innovative expertise and experience in the global insurance sector were centre stage, as well as the island's strengths, robust but proportional regulation and the multitude and depth of the island's expert supporting professionals.
"It was a hugely successful event blessed with stunning Guernsey weather too. It was Airmic's first visit for 25 years, and we hope to see them back next year."
For more information about Guernsey's finance industry please visit www.weareguernsey.com.
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