Posts Tagged ‘risk management’



April 15th, 2014

Guy Carpenter and Oliver Wyman Publish Third Annual Insurance Risk Benchmarks Report

Posted at 1:00 AM ET

Guy Carpenter and its sister company, Oliver Wyman, the international management consulting firm, published the third annual Insurance Risk Benchmarks in September of 2013. We highlight the report here again. 

Continue reading…

April 10th, 2014

GC Capital Ideas Reviews Climate Change After New IPCC Report

Posted at 1:00 AM ET

In light of the Intergovernmental Panel on Climate Change (IPCC) latest report, Climate Change 2014: Impacts, Adaptation, and Vulnerability, released on Monday, March 31, here is a review of recent GC Capital Ideas stories focused on climate change.

Responding to Climate Change:  It is vital for (re)insurers to consider how climate change could impact future losses. Global warming potentially poses a serious financial threat to the insurance industry with implications for catastrophe risk perception, pricing and modeling assumptions.

Read the article>> 

 

Climate Change: A Look into the Future: Global climate models project a best estimate of a further two to four degree (Celsius) increase in the mean temperature of the Earth by the end of this century. Although this may seem insignificant on an intuitive level, the resulting impacts are of significant concern. Sea-level rise is the most significant threat for coastal areas as a result of melting glaciers. Apart from this threat, changing weather patterns will result in drought and inland flood threats for some areas. As a general principle of climate change, changes to the mean of meteorological extreme value distributions can be expected but an increase in tail thickness (or variability) is of greater concern. The day-to-day variability that we see today will likely expand.

Read the article>> 

 

The Reality of Global Warming: The increase in the global mean air temperature, as compared to the 1951-1980 average and the surge in average oceanic heat content for the 0-700 meter layer is depicted in these graphics. The increase in oceanic heat content in particular is notable as it takes a very large amount of energy to heat such a volume of water.

Read the article>> 

 

Global Warming: Adaptation Measures: The IPCC publications represent scientific consensus among many of the world’s top scientists (and scientific consensus is difficult to achieve). Their findings are generally consistent with the broader scientific literature.

Read the article>> 

 

Global Warming: Losses: Economic losses resulting from natural disasters increased from USD75.5 Billion in the 1960s to USD659.9 Billion in the 1990s. Insured losses have also increased, and “the dominant signal is of significant increase in the values of exposure.” Furthermore, the IPCC states that “failure to adjust for time-variant economic factors yields loss amounts that are not directly comparable and a pronounced upward trend for purely economic reasons.”

Read the article>> 

 

Global Warming: The Evolving Risk Landscape: Global warming is an established scientific fact, and one that cannot be explained by statistical “noise” or natural variability alone. The single greatest threat under global warming is that of sea-level rise, which is expected to increase coastal flood frequency and severity under tropical cyclone, extratropical cyclone and tsunami events. The growing urban footprint and population density in coastal areas amplifies the financial and societal implications of such events.

Read the article>> 

 

Click here to register to receive e-mail updates>>

April 3rd, 2014

ERM Benchmark Review, 2013 Update: Part IV

Posted at 1:00 AM ET

Capital Management

Capital management using risk-based capital models and capital allocation is a central component of risk management practices. We have investigated this topic as a new chapter for our 2013 ERM Benchmark update. In this context, Table 3 shows the portion of companies that publish concrete data on their excess capital - the amount of capital retained in excess of a certain target amount. Table 3 also shows both the portion of companies using risk-based capital models in the risk management process and the portion giving some indication of the methodology of the capital allocation process.

Continue reading…

April 2nd, 2014

ERM Benchmark Review, 2013 Update: Part III

Posted at 1:00 AM ET

Risk Types

Table 1 (below) quantifies the proportion of companies in the sample that disclose the method as well as the specific level of various risk quantifications. Compared to our previous ERM benchmark study, a new metric referring to catastrophe risk has been added. Taking advantage of the increased level of disclosure and transparency on catastrophe risk exposure, we have extended our reports to include this in view of its importance in the economic capital approach of (re)insurers.

Continue reading…

April 1st, 2014

ERM Benchmark Review, 2013 Update: Part II

Posted at 1:00 AM ET

2013 Update General Observations

Before focusing on the results of the latest study, we would like to reaffirm the definition of risk profile, risk appetite and risk tolerance found in our previous publications:

Continue reading…

March 31st, 2014

ERM Benchmark Review, 2013 Update: Part I

Posted at 1:00 AM ET

In April and October 2009, Guy Carpenter published two briefings titled “Risk Profile, Appetite and Tolerance: Fundamental Concepts in Risk Management and Reinsurance Effectiveness.” This briefing is an update of those studies that summarizes the information publicly disclosed on enterprise risk management (ERM) measures.

Continue reading…

March 27th, 2014

Recent Sun Flare Event Is a Reminder of Solar Weather Hazards

Posted at 1:00 AM ET

On Monday, February 24, 2014, the sun once again provided a reminder of the potential hazards of solar weather events. A large solar flare was reported by the National Aeronautics and Space Administration (NASA) measuring at X4.9 (1) (or according to the National Weather Service’s Space Prediction Center, an R3 (strong) Solar Flare Radio Blackout) (2) that could cause severe disruption to satellites and technology on Earth.

Continue reading…

March 26th, 2014

What is Food Security? Part III: Putting It into Practice and a Look to the Future

Posted at 1:00 AM ET

peter_book_-smaller-hsPeter Book, Head of Agriculture, Asia Pacific

Contact

Putting it into practice

In several Asian countries there are already examples of attempts to alleviate the physical, social and economic factors that hamper food security.

Continue reading…

March 25th, 2014

What is Food Security? Part II

Posted at 1:00 AM ET

peter_book_-smaller-hsPeter Book, Head of Agriculture, Asia Pacific

Contact

Social: Managing the supply side.

A challenge in many regions is the transport from the farm of the right food to the consumer without physical loss or spoilage. Putting transit losses aside, there is a question of getting the “correct” food and influencing the supply chain.

Continue reading…

March 24th, 2014

What is Food Security? Part I

Posted at 1:00 AM ET

peter_book_-smaller-hsPeter Book, Head of Agriculture, Asia Pacific

Contact

Food security exists when all people, at all times, have physical, social and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.¹

Fundamentally food has to be safe, nutritious and available in sufficient quantity. On a global scale these are always achievable. It is at a country or smaller geographic territory-level where problems often arise. These concepts encompass the first part of the opening statement and relate to access:

Continue reading…