Risk Finance
Risk Financing involves risk-taking and the implementation of various funding structures other than traditional insurance.
This is the creation of a commercial mechanism which allows companies whose core product is not oriented around providing Financial Services and Financial Products (i.e. insurance) but who want to engage in these markets and types of products. Risk Financing allows the client to have access to these markets through a legal structure but also have access to the financial benefits directly.
There are country specific legislative constraints in this environment that create barriers to entry for the setup, consequent selling function and administration of these products. Therefore, Risk Finance allows for financial mechanisms which in turn affords the following possibilities:
- Partnership with those firms that are already appropriately licensed and experienced
- Loss and profits of the financial products to be accounted for separately
- Any loss incurred will not affect the core businesses operational capital
- To be able to receive profit share and/or dividends
- Self-regulating and independent revenue stream
- Individual reporting lines with external accountability
Most notable of these mechanisms is the Cell Captive and the Primary Cell/Contingency Policy.
| Primary Cell/ Contingency Policy | Cell Captive |
| Rental Ownership | Sectional title ownership |
| Use of full Insurance Licence | Use of full Insurance Licence |
| Own Insurance only | Own Insurance plus third party Insurance |
| No Shareholders Agreements | Shareholders Agreements |
| No formal Capitalization or solvency | Statutory capitalization |
| Ring fenced results | Ring fenced results |
Advantages of WWAS
- Innovative
- Solution driven
- Flexibility
- Long-term Commitment
- Competitive Pricing Structure
- High Service Levels
- Compliance
- Access to a Short-term and Long-term Insurance license