Prysmian Riassicurazioni
Why a captive?
The establishment of a Reinsurance Captive, as a risk financing solution, is a fundamental tool to achieve the company’s strategic objectives, as it allows for a significant improvement of the Group’s Insurance and Risk Management activities.
A well-structured Captive strategy provides several benefits, i.e. increasing flexibility and control over insurance programs, reduction in the Total Cost of Risk (TCOR), increasing coverage capacity despite the presence of Hard Market situations, and improving traditional market diversification.
Managing a Captive requires a good knowledge of the insurance market, transversal skills in the technical-regulatory field, and quantitative, actuarial and risk management skills to support a sound capital management.
LoBs
Pursuant to Article 1 paragraph 1 of the Italian Insurance Law (Codice delle Assicurazioni Private), Prysmian Riassicurazioni S.p.A. intends to reinsure the risks of the Prysmian Group’s subsidiaries, to which it belongs. The reinsurance treaties underwritten are non-proportional insurance agreements with the world’s leading (re)insurance companies.
The Italian Insurance Supervisory Authority has authorised the Company to underwrite reinsurance treaties in the following non-life Lines of Business (according to the Italian law):
- LoB 8 – “Incendio ed elementi naturali” i.e. Property damage and Business Interruption;
- LoB 9 – “Altri Danni ai Beni” i.e. Employers liability, CAR EAR;
- LoB 13 – “Responsabilità Civile Generale” i.e. General liability;
- LoB 14 – “Credito” i.e. Credit.
