The role and tasks of IRCA in insurance

IRCA specialises in two types of insurance:

1. Directors and Officers (D&O) Liability Insurance and
2. Employee Insurance.

We act for the benefit of our clients primarily, but not exclusively, in these two areas.

Few people dream of being involved in insurance as a child. There are different, often completely random, ways of choosing this profession. We want to pursue it with integrity, heart and passion.

Is it possible to see a deeper meaning in our work?

Historians of ideas claim that the invention of the limited liability company is one of the most brilliant achievements of humankind, as it reduces the risk for the owner, investor and donor of capital[i]. Previously, the owner bore full, unlimited liability for all and any obligations incurred. For centuries this legal situation has discouraged risk-taking because, in addition to the entrepreneurs themselves, their families also bore the risk. In the case of limited liability companies, when the acts or omissions of the board of directors or employees lead to damage, one can sue the company, its board of directors or employees but not the owners. Similar principles apply to joint stock companies, where stockholders are not liable for the company's obligations and bear the risk only up to the amount of capital contributed. Limited liability companies and joint stock companies, i.e. capital companies, have reduced the risk of undertaking activities.

These inventions led to an unimaginable increase in human activity in the 19^th and 20^th centuries.

The introduction of the first D&O insurance in the late 19^th century was an equally brilliant invention, as it introduced a mechanism to free up activity and reduce risk, not only for owners, but also for boards of directors, supervisory boards and the whole, broadly defined, management of capital companies. This is a continuation and natural development of that human thought which previously gave rise to capital companies and made it possible to separate the liability of shareholders/stockholders for the company’s obligations. Now managers can make a rational decision to limit their liability from private assets.

Obviously, the history of economic invention does not follow a straightforward path, and the desire to preserve diversity has kept partnerships with full owner liability alive as the equivalent of capital companies. Similarly, in D&O insurance, restrictions have arisen in various countries to cede these risks to external parties. These include, for example, numerous exclusions from cover or mandatory deductibles for damage caused by the misconduct of management staff.

We believe that the development of this type of insurance (D&O) may lead, analogous to the “explosion of activity” following the invention of limited liability companies, also to a significant increase in economic initiatives, through a greater willingness to take risks among boards, managers, and executives.

There can be no rapid growth of companies without “inner peace” within the enterprise, social peace, and even more, without employee satisfaction. There are many ways to achieve this. One of them, an effective way to make employees loyal the company, is to take care of employee insurance: life insurance and health insurance.

This is why IRCA sees a deeper meaning in offering help and support to its clients in just these types of insurance.