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RMB Structured Insurance (RMBSI) announces new division

18 March 2015Gustavo Arroyo, RMBSI

RMBSI today announced the creation of a new Risk Finance division, focused on providing risk finance and risk retention solutions to support the wide range of insurance structures currently offered by RMBSI.

The new division is dedicated to meet the increasing demand for alternative risk transfer mechanisms for small and medium enterprises as well as within the corporate market. With this customer-centric approach, RMBSI will develop a focused and dedicated approach necessary to help growing its customer base and expanding its broker and referrers network.

Gustavo Arroyo, CEO of RMBSI said he was thrilled with this development. “The Risk Finance Division will build on the existing expertise of the RMBSI staff, which includes a highly specialised insurance and financial skill set, underwriting expertise, IT systems, re-insurance arrangements, off-shore licenses, investment-and asset management offerings and regulatory capacity, to provide tailored insurance solutions to its customers. The establishment of this new division reflects RMBS’s ongoing focus on deploying insurance specialist skill set in their approach to the structured insurance market.”

The new division will be headed by Gielie Swart, who will have full responsibility for its end-to- end operations. Prior to joining RMBSI, Gielie Swart held several senior leadership positions within the short-term insurance industry, including 8 years as the Managing Director of a niche short term insurer. His leadership team will consists of Andre Ferreira, Gert Olivier and Frank Theart; a team that jointly brings more than 40 years of short-term experience to RMBSI. As a leading player in the structured insurance market, RMBSI will be extremely well positioned to deliver that innovation across the traditional insurance markets as well as to extend their position into new markets.

The new division will also allow for greater flexibility in implementing the expansion of RMBSI’s services and strengthening the company’s go-to-market capabilities. By leveraging its existing capabilities, RMBSI will be well positioned to create unique insurance solutions for customers and partners on their specific business needs and where customers will experience unrivalled support of a highly motivated team.

Product focus:

With the ever changing risk environment it has become a necessity to design and structure insurance products and programs to fit each individual client’s needs. The Risk Finance Team will be working closely with client’s management teams and their advisors to determine the optimal level of risk retention versus the amount of risk that is transferred to the insurance and reinsurance markets. These solutions will be innovative and built on a foundation of exact study and understanding, which will be aligned with the client’s risk management programs to meet their strategic business and financial objectives.

The main focus of the division will be bespoke products in the Alternative Risk Transfer Market.

Alternative Risk Transfer (“ART”) is broadly defined as financing risk outside of the traditional commercial insurance market. The ART market is comprised of a full spectrum of risk financing methods ranging from high deductible programs and self-insured retentions to risk purchasing groups to licensed and regulated captive insurance companies.

Key benefits of ART Programs

• Reduced reliance on conventional insurance;
• Protection against income statement volatility where the insured has the appetite to retain a portion of the risk;
• Provision of insurance cover where otherwise unavailable or unaffordable;
• Access to reinsurance markets;
• Cash flow from an effective structure to fund unexpected losses;
• Ability to customize insurance programs;
• Formalise the allocation of deductibles for self-insurance retention;
• Improve risk management through greater access to claims and underwriting data;
• Improved claims handling and claim procedures.

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