“Captive insurers are “key” to the reputational risk financing effort, according to Nir Kossovsky, CEO of Steel City Re, a reputation risk management company offering robust solutions for both a company and its board. He believes that the area represents a massive opportunity to captives and that they have a vital role to play, particularly in the digital age where the world of reputation risk has enlarged. He explained: “The roles that captives play is, in part, setting the expectations of the capital markets by providing reserves to cover the shortfall in the event that something bad happens. It’s a very important signal to be sending out.”Captive Insurance Times
June 10, 2019
“Captive insurers are ‘key’ to the reputational risk financing effort, according to Nir Kossovsky, CEO of Steel City Re.”
Reputation insurance: indemnification affirming trust and reducing economic losses.
For a broader view of reputation risk, discover additional articles by Steel City Re here, mentions of Steel City Re here, and comments on newsworthy topics by Steel City Re here. To read an abstracted summary of reputation risk, see below.
Reputations are valuable strategic intangible assets. Threats to these assets⏤ enterprise reputation risks, often mislabeled “brand risks” ⏤ need to be managed, and management needs to be overseen through reputation risk governance lest reputational damage or reputational harm result in long-tailed go-forward losses in economic value and/or political power. Because these intangible risks arise from the interplay of stakeholder expectation, experiences, and media amplification, parametric insurances for intangible asset risks, for reputational value, for reputational harm, and for reputation assurance help mitigate risk by telling a simple, convincing and completely credible story of quality reputation governance to stakeholders. This story telling effect is the expressive power of insurance complementing insurance’s better known instrumental power of indemnification.
Risk management, risk financing in insurance captives, and risk transfer through reputation insurances comprise the constituent elements of a comprehensive solution.
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