Saturday, June 15, 2024

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Singapore captive association to support regulatory, industry dialogue

A captive owner association in Singapore is being developed by PARIMA and could be the first of several such groups in the region.

PARIMA is the risk management association for the Asia region and has a growing number of captive owners within its membership.

Speaking to Captive Intelligence Franck Baron, chairman of PARIMA and group deputy director of risk management and insurance at International SOS, which owns a captive in Singapore, said an association for captive owners in the domicile would be a good way to share best practices and coordinate dialogue with the Monetary Authority of Singapore and industry.

“We are creating a captive association, which is to become the body for captive owners in Singapore,” Baron said.

“This will allow us to have conversations with MAS and help them to promote the domicile because this domicile is extremely supportive to business and risk management.

“We are creating an Association because we believe that there is still a lot that can be done in order for risk managers to look at captives as a strategic risk financing tool.

“We are still seeing too many panic captives, because people look at it as being a way to absorb the insurance premium cycle, instead of creating something with a strong foundation at parent level where captives are viewed as a risk financing tool.”

Speaking on the Global Captive Podcast in June, Baron said there was a wider ambition to launch captive owner associations across the region, but Singapore was a good first step.

“After a long period of time of thinking about what PARIMA can do to supported the development of captives, we came to the conclusion that we have to create captive owner association for Asia, starting with Singapore,” he explained.

“I am very excited about it because we want to gather all captive owners together so that we can have a clear and distinct voice when it comes to talking to the regulator, the market and sharing best practices.”