FERMA
CIT talks to Pierre Sonigo of FERMA ahead of the federation’s upcoming forum to talk risk management, agendas and helping new recruits
What is FERMA and why was the association originally set up?
The Federation of European Risk Management Associations (FERMA) today represents 22 national risk management associations in 20 European countries, which among them have about 4500 individual members. FERMA began in 1974 under the name of the European Association of Industrial Insureds, and held its first meetings in association with the US Risk and Insurance Management Society. With the growth in risk management associations across Europe, the organisation became a federation to bring them together at pan-European level.
FERMA’s role is to promote the role of risk management and the interests of risk managers with EU institutions, especially the European Commission, and work in partnership, with other European associations on areas of mutual interest. Among these partners are the European Confederation of Institutes of Internal Auditing (ECIIA) and the European Confederation of Directors Associations. Through these relationships FERMA is able to strengthen the voice of risk management in Europe by increasing its contacts with their members and through joint representation to the European Commission.
FERMA also promotes the risk management profession by encouraging the development of risk management education and qualifications and support for young risk managers.
What has been on the agenda for FERMA this year?
This has probably been FERMA’s most active year ever. In addition to organising the biannual risk management forum that is its biggest event, FERMA held a joint event with the European law association AIDA Europe in Paris in June to discuss very topical insurance law issues, such as trade embargoes. It worked with Harvard Business Review Analytics and insurer Zurich on three research projects covering cyber risks, environmental risk management and risk management leadership.
The working group on certification has continued its examination of a possible pan-European certificate of competence for risk managers, and is expected to present a progress report to the forum that starts on 29 September.
FERMA also hired its first staff European affairs adviser, Julien Bedhouche, and his presence is greatly increasing the support that FERMA can give to its members in relation to European Commission and Parliament issues, such as the revision of the Insurance Mediation Directive and discussion on compulsory financial guarantee funds for environmental liability.
At the general assembly in June, FERMA also agreed an important change to its bylaws. It agreed to allow individuals and organisations that have a strong interest in risk management in Europe—but are not eligible to join one of the member associations—to become members of FERMA.
What work has FERMA been doing on behalf of its members captive insurance and reinsurance companies?
Many FERMA members have captive insurance and reinsurance companies. FERMA does not get involved in operational issues, but has been representing the interest of its members who have captives in relation to Solvency II. FERMA has pressed the European Commission to make the application of Solvency II proportional to the low policyholder risks posed by captives, which insure only their owners. FERMA also notes that the continuing delay in the adoption and implementation of Solvency II makes it difficult for captive owners to plan for future development.
Enterprise risk management is an integral tool for any organisation—how has this practice developed during your time in risk management, and what does it achieve for businesses today?
FERMA supports its use, particularly through the publication in partnership with the ECIIA on the risk management provisions of the 8th European Company Law directive. These are available from the FERMA website.
What can we expect from this year’s FERMA forum? Are there any particular speakers/panel discussions that attendees should look out for?
For people with an interest in captives, the keynote speaker Karel Van Hulle should be especially interesting because he was the head of insurance and pensions for the European Commission and lived with Solvency II from 2004 until his retirement in 2011. There will be three panel discussions starting with risk managers who will talk about their current issues and throw down a challenge to the broker and insurer panels on subsequent days.
There will also be 15 workshops organised and run by risk managers and these include topics such as innovative solutions for cross-border health and benefits programmes, non-physical damage business interruption and enterprise risk management—fact or fiction.
