Loss reserves are arguably one of the most difficult risks to estimate and monitor. In fact, inadequate pricing and deficient loss reserves have been the leading cause of property/casualty company impairments. According to A.M. Best, from 1969 to 2009 they triggered approximately 40 percent of all impairments - four times more than those emanating from natural catastrophes (1). There are many uncertainties in managing long-tailed, heavily legislated lines of business that can be triggered from emerging risks. Unforeseen inflation and anticipated legislative changes over a 10 to 30 year period present many demands. In order to prepare for emerging risk scenarios, future trends and related uncertainties need to be explicitly identified, contemplated and estimated.
Posts Tagged ‘capital’
Here we review GC Capital Ideas posts on how the private sector is exploring the development of innovative solutions for public sector risk exposures.
From one of GC Capital Ideas’ more popular categories, we highlight the top Chart Room stories viewed during the first half of 2016:
Here we review GC Capital Ideas posts on how the view of applying (re)insurance to risk decision making is evolving.
Here we review GC Capital Ideas posts on how the accumulation of data and utilization of models will help (re)insurers understand the implications of emerging risks.
Here we present GC Capital Ideas’ stories on analyses of enterprise risk management disclosures. A 2014 study updated the analysis done in 2009, one of our most popular stories. The full briefings are attached.
Here we review GC Capital Ideas posts on the benefits of enterprise risk management practices in supporting (re)insurance capital and regulatory decision making.
Here we review GC Capital Ideas posts on how alternative capital has impacted the dynamics of risk transfer.
Here we review GC Capital Ideas posts on how catastrophic exposures are adversely impacting public entities.