Tuesday 27 November 2018
Ronny Vellekoop, Senior Executive Officer, Marsh
Dubai - MENA Herald:

Marsh, a global leader in insurance broking and innovative risk management solutions, today announced that it has been awarded the first licence to provide captive insurance management services in Abu Dhabi.

A captive insurance company is a legal entity formed primarily to insure the risks of one corporate parent or a number of similar corporations – for example, trade associations – thereby contributing to a reduction in its parent’s total cost of risk. Captives are used extensively throughout the world by organizations of all sizes to cover risks situated both at home and abroad and play an integral role in the implementation of many firms’ global risk financing strategy.

Operating as Marsh Management Services (MENA) Limited, the firm has been authorised to provide captive insurance management services by Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA). The AGDM is the International Financial Centre in the capital of the United Arab Emirates. Marsh Management Services (MENA) Limited is the first company to be authorized as a captive insurance manager by the FSRA.

According to Marsh’s 2018 Captive Landscape Report, captive insurance vehicles are rapidly growing in popularity as risk managers seek alternative ways to finance emerging risks their organisations now face. Companies based in the Middle East placed premiums of US$584 million into captive insurers in 2017, according to the report.

“Abu Dhabi aims to play a pivotal role in meeting the growing financial, insurance needs and requirements of the region, while connecting and strengthening links between the financial markets of Europe, the Middle East, Africa and Asia,” said Ronny Vellekoop, Senior Executive Officer, Marsh. “Through our captive management operations in ADGM, Marsh is well-placed to advise organizations across the region in how to use captive insurance companies to reduce the increasingly volatile risks they face, manage the costs of employee benefit plans, and boost their financial certainty.”

“Captives insurance vehicles are an increasingly important risk financing tool for organizations of all sizes. When placed at the core of a risk management programme, captives offer unrivalled flexibility in financing emerging and high-severity risks, such as cyber risks, terrorism, and employee benefits,” he added.

Mr Richard Teng, Chief Executive Officer of the FSRA of ADGM, said: “We are delighted to welcome Marsh to the ADGM family. Their global expertise and presence in ADGM will further add to the risk advisory and insurance solutions space in the region as well as enhance the captive insurance platform in ADGM. As a captive insurance manager, Marsh is poised to provide innovative and key services to companies in Abu Dhabi and the wider region. ADGM will continue to strengthen its captive insurance regime to provide users with strategic risk management and financial solutions to support their business ambition and growth locally and globally.”

In 2018, Marsh Captive Solutions celebrates 50 years since the firm opened its first captive office in Bermuda. Marsh Management Services (MENA) Limited approval to operate in ADGM means the firm is now active in 50 captive domiciles globally, with over 400 professionals dedicated to captive management and risk financing activities for more than 1,250 captives.

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