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14 March 2019
Guardrisk occupies a unique space within the insurance eco-sphere. Until now, the company has studiously avoided assuming large amounts of risk on its own balance sheet. It did this by assisting clients to self-insure, through a concept known as cell captive insurance.
This is where a client sets up a ring-fenced facility in a registered insurer to accept insurance premiums from itself and pay out claims—to itself. The incentive is to keep payouts (and hence, premiums) as low as possible due to good risk management. So, for example, driver re-training programmes have been found effective in reducing accidents and saving on fleet management operating costs and insurance. Any surpluses left over at the end of the year are then paid out as dividends to the cell captive owners, who are both shareholders and clients in the scheme. It’s a brilliant concept that resonates with corporate clients, who stand to save significantly on their traditional insurance premiums. It’s little wonder that Guardrisk, which pioneered this concept, remains the world leader in this field.
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