Pascal Prévost, former manager of corporate insured employee benefits at Nestlé explores how captives could be used to reinsure employee benefits

Captives are becoming more and more popular among risk managers but so far very few of them have ventured into the reinsurance of employee benefits.

However, considering employee benefits premiums are a several times multiple of Property and Casualty budgets, it’s possible that this could be an interesting development in the captive space.

Employee wellbeing

At the Risk-!n conference in Zurich on May 25, Pascal Prévost, the former manager of corporate insured employee benefits at Nestlé will be discussing how captives could help seize potential opportunities considering the importance of the human capital within the context of ESG.

Ahead of the session, Strategic Risk caught up with Pascal to get a flavour of what he will be talking about to hear what risk managers will learn at the event.

Why have captives not ventured into the reinsurance of employee benefits so far?

This is a good question as the budget for insured Employee Benefits is three or four times bigger than the Property and Casualty premiums. And this budget increases year on year with double-digit rates as far as medical premiums are concerned.

There are various reasons which include the specific characteristics of these coverages which respond to local requirements, the decentralised nature of these benefits for numerous multinational companies, some communication issues between functions but principally the lack of access to reliable data likely to give to these coverages the level of priority they deserve.

”The budget for insured Employee Benefits is three or four times bigger than the Property and Casualty premiums”

What role could captives play in employee benefits and protecting human capital?

Captives could certainly play a key role in providing increased transparency and control on insured Employee Benefits.

This will enable risk managers to optimise the funding of these benefits, achieve better consistency throughout the organisation, improve its reputation and image, and contribute to health promotion initiatives if needed.

What would be the benefit for risk managers of exploring captives for employee benefits / ESG risks?

This kind of initiative could improve the profile of Risk Managers who will have the opportunity of contributing to some strategic projects like ESG, the attraction and retention of talents and improved productivity of the employees.

What are some of the main things attendees will learn at your Risk-!n session?

Attendees will learn what are the requirements to successfully involve a captive in the funding of Employee Benefits and in the roll-out of an ESG strategy through some real-life examples.

To find out more about the conference, or to register to attend, visit the Risk-!n website.

Pascal has more than 35 years of experience in insurance, reinsurance and risk management gained during six years at Eurodisney and 16 years at Nestlé where he was the general manager of the Group reinsurance captive but also with various brokers in the UK, USA and France.

During his last assignment, he applied a strategy based on risk management principles to optimise the funding of insured Employee Benefits which was supported by the Nestlé HR and Procurement teams.