Airmic has partnered with Aon to publish a practical guide for independent non-executive directors (iNEDs) on captive boards.
Designed as a resource for individuals currently serving as directors on captive boards, or considering an appointment in the future, A Practical Guide for Independent Non-Executive Directors on Captive Boards contains valuable information for captive managers and captive owners when considering new appointments to the board.
Julia Graham, deputy CEO and technical director at Airmic, suggested that captive governance will continue to come under scrutiny as tax authorities, which consider captives to be vehicles that encourages profit-shifting and tax avoidance.
Furthermore, she said captives are becoming more sophisticated and are insuring more complex risks than they have in the past, creating the need for more robust governance.
“This practical guide suggests a range of simple but really important steps that can be taken to ensure captive company board oversight is fit for purpose,” said Graham.
Ann O’Keeffe, chief risk officer, Captive & Insurance Management, Aon, added: “A captive board should collectively have a balance of skills, and a broad range of experience, hence an independent director does not necessarily have to have a risk and insurance background, if this skill is already addressed by the board.”
Areas covered by the guide include: the benefits of an independent view on the board of a captive; what experience to look for; how to go about appointing an iNED; and best practice in areas like performance measurement and the development of service level agreements.
Airmic, Aon, non executive director, iNEDs, UK