April 9th, 2009
Catastrophe Risk Management Options for the Smaller Insurance Company
Posted at 12:00 PM ET
David Rains, FSA, MAAA — Managing Director and Head of the Life, Accident and Health Specialty Practice, Guy Carpenter & Company, LLC
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Every life insurer is exposed to catastrophe risk. The largest carriers, of course, tend to have the capital on hand to absorb substantial losses and can rely on economies of scale to make reinsurance more affordable. Smaller life insurers, on the other hand, do not always have the same risk management tools available at a proportionate cost. Thus, they may feel forced to retain risks which, if realized, could imperil solvency. Fortunately, there are products on the market that make cover attainable for smaller life insurers.
