Posts Tagged ‘risk management’
Here we review recent GC Capital Idea stories on catastrophe models that focus on exposures beyond catastrophe property risk:
Guillermo Franco, Head of Catastrophe Risk Research - EMEA
Destruction caused by catastrophes often unfolds due to inadequate construction practices or land use planning. The likely response to these events is to strive to “build back better,” in part by addressing the mistakes of the past. Unfortunately, communities that embrace this challenge often find that they lack the financial resources for it and ambitious reconstruction projects lose momentum.
Micah Woolstenhulme, Manager, ERM Services, Strategic Advisory
The Insurance Risk Benchmarks Research is an ongoing project sponsored by Guy Carpenter & Company and Oliver Wyman to assist property/casualty (P&C) companies with profiling enterprise risk. Articulating an individual company’s risk profile requires assessment of both absolute and relative financial uncertainties. The absolute uncertainties can ultimately be codified in an economic capital model, but robust review of relative historical performance invariably improves the codification of certain systemic risks.
Here we review recent GC Capital Ideas stories on how better analytics can support (re)insurers’ capital modeling and benchmarking.
Guy Carpenter today announced the appointment of Matthew Eagle as Managing Director and Head of International Analytics for Guy Carpenter.
Guy Carpenter helps our clients manage the specific counterparty risk elements associated with collateralized markets. The credit analysis of collateralized markets is different than the analysis of a traditional reinsurer.
In the second video in the Holistic Balance Sheet Management series, Andrew Cox, Capital Optimization, Guy Carpenter and Niall Clifford, Financial Strategy Group, Mercer, explore how companies should approach investment risk and the link between investment strategy, risk appetite and reinsurance strategy. A key focus for insurance companies should be to link their investment strategy with their risk appetite metrics. While any increase in return on capital may seem very attractive, it is important that companies ensure that the risks they are taking are in line with their risk appetite and that they are aware of their constraints, allowing them to take risks in a measured way. Investment strategy should be considered alongside regulatory requirements, as a key aspect of Solvency II relates to how well each company understands the risks in its portfolio.
A holistic approach that optimizes the use of the two traditionally separate areas of balance sheet management within the current market environment has proven to be extremely challenging for non-life insurers. The key issue for non-life insurers is how to boost return on capital in a continuing low-yield environment. In the first of the Holistic Balance Sheet Management series, Andrew Cox, Capital Optimization, Guy Carpenter, and Niall Clifford, Financial Strategy Group, Mercer, discuss how insurance companies may optimize their capital while addressing their concerns over economic capital, earnings risk, ratings agency requirements and increasing constraints due to Solvency II.