Following AstraZeneca’s ground-breaking reinsurance deal, more UK companies are looking to use their captives to cover so-called “connected risks” according to the Corporate Working Group, a network of UK risk managers behind the concept.

AstraZeneca’s multi-year solution sits as a reinsurance layer above the captive and compliments AstraZeneca’s existing P&C multiyear, multi-line reinsurance programme. The policy was taken out with three global reinsurers, and covers supply chain disruption, reputational damage, and product withdrawal.

David Broughton, head of insurable risk at Centrica and chair of the Corporate Working Group, which was established by risk analytics firm Russell Group, says that the industry needs to move away from peril-based traditional insurance products to considering risk from an outcome-based perspective.

Members of the Corporate Working Group and Russell Group have been invited to present the details of this innovative venture with potentially major implications for the wider corporate risk and insurance community and the way the business works in future.

Key questions covered will include:

• Why has this never been done before?
• How does the evidence-based approach work?
• Is this really a parametric in essence?
• Why does this go direct to the reinsurance market and what is the advantage of this approach?
• How does this approach fit with a global programme?
• What risks can potentially be covered?
• Is this only really relevant for capacity hungry sectors like pharma?