Jersey is working on plans to allow companies to share captive insurance vehicles.
Neighbouring Guernsey pioneered the use of protected cell companies (PCCs) effectively allowing clients to split the cost of setting up their own insurer.
There has been a surge in interest in PCCs corresponding with the upswing in insurance rates. PCCs are seen as an alternative to mainstream insurance. They appeal to companies facing rocketing rates or unavailable cover, that are not big enough to afford their own captives.
Jersey's plans for an equivalent are expected to bear fruit next year. But the island's financial chiefs have received legal advice that they shouldn't copy Guernsey's arrangements too closely.
Some lawyers are understood to believe the legislation ring fencing each client's assets in the shared insurance vehicle may not stand up to legal challenge in some jurisdictions.
Isolating each cell within the shared vehicle is fundamental to reassuring clients that they are splitting only the costs involved and are facing another company's risks. While Guernsey's protected cell legislation is believed to be sound under the island's jurisdiction,
some experts have cast doubt on its strength if tested in a US or UK court of law.
The Isle of Man has also held back from creating protected cell legislation.
Broker Aon recently took advantage of new laws in Gibraltar to set up a specialised protected cell operation there.
Companies should be aware of the threat of `group think', Airmic delegates were told yesterday.
The London School of Economics (LSE) visiting professor of operational research, Dr Lawrence Phillips, described how tightly knit management teams can fall foul of `group think', which inhibits change and leads to a dominant character bullying others.
"What is created in a group think management team is an illusion of unanimity and correctness.
A dominant figure in the group will force the others to make sure dissenters conform with the majority view," said Dr Phillips.
He said a lack of corporate vision was the greatest threat for any risk manager.
"What a company needs is a decision-making mentor, one who takes a clear, objective view and is in touch with hard realities."
