The Federation of European Risk Management Associations (FERMA) has launched a campaign to change misperceptions of captive insurance by tax authorities and other public bodies.
As a starting point, FERMA has published a position paper on captive insurance companies, which it will submit to the Organisation for Economic Co-operation and Development (OECD) so that the views of European risk managers are considered when the OECD discusses the implementation of its Base Erosion and Profit Shifting (BEPS) measures with member governments.
FERMA will urge its 22 member associations across Europe to use the position paper to approach their national tax authorities, who will be responsible for deciding how to implement the BEPS measures, to explain the real risk management value of captives.
In light of the latest corporate transparency and anti-tax avoidance measure at European Union level, FERMA will also reach out to the Commission and Parliament to increase their understanding of the role of captives in the European economy. This follows the adoption in July of the Anti-Tax-Avoidance (ATA) Directive by the Council of the EU.
Jo Willaert, president of FERMA, said: "Captives serve an important enterprise risk management role for European business and other organisations. We believe it is important that EU tax authorities understand better how European captives operate to preserve these risk financing capacities. This is not about tax, but a fear that the administrative costs of owning a captive will become uneconomic."
FERMA will also raise the issues at the European Insurance and Occupational Pensions Authority stakeholder group through its representative Marie-Gemma Dequae.
FERMA, Europe, Insurance, Captive, OECD, Risk management, Jo Willaert