Posts Tagged ‘risk management’



January 13th, 2017

Global Risks Report 2017

Posted at 1:00 AM ET

global-risks-report-landing-page-sm1The Global Risks Report 2017, produced by the World Economic Forum with support from Marsh & McLennan Companies and other partners, was published this week. Now in its twelfth edition, the report provides insights into the key global risks facing businesses as well as the collective view of risk experts in all sectors as to the most significant threats to global prosperity over the next decade. The Global Risks Report 2017 will inform discussions at the World Economic Forum’s annual meeting next week in Davos, Switzerland.

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December 15th, 2016

Public Sector Risk Financing Perspectives in Europe/Middle East/Africa: Part IV: Closing the Protection Gap

Posted at 1:00 AM ET

whitmore_charles_photo-sm4Charles Whitmore, Managing Director

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These trends are likely to support broader product offerings and greater market stability around which the private sector may close the protection gap in EMEA and in other regions:

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December 14th, 2016

Public Sector Risk Financing Perspectives in Europe/Middle East/Africa: Part III: Highlights of Recent Public Sector Initiatives

Posted at 1:00 AM ET

whitmore_charles_photo-sm3Charles Whitmore, Managing Director

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Following years of planning by the insurance Industry and negotiation with a wide group of stakeholders including the government, Prudential Regulatory Authority (PRA), the Financial Conduct Authority (FCA) and others, Flood Re launched in April 2016. The overarching aim of the market-based scheme is to ensure better access to more affordable household insurance for those in high flood risk areas.

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December 12th, 2016

Public Sector Risk Financing Perspectives in Europe/Middle East/Africa: Part I

Posted at 1:00 AM ET

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Charles Whitmore, Managing Director

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On a global basis, approximately 70 (1) percent of the economic loss caused by natural catastrophe events is not covered by insurance. This gap, the cost of uninsured events, frequently falls on governments through disaster relief, welfare payments and infrastructure repair and rebuilding. The ultimate cost of these responses causes a strain on public balance sheets and an increase in public debt, ultimately burdening taxpayers. The protection gap is increasing in emerging economies especially where the amount of natural catastrophe economic loss covered by insurance dropped from 25 percent in 2002 to approximately eight percent in 2014.

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November 28th, 2016

MMC Cyber Risk Handbook 2016: Increasing Resilience in the Digital Economy

Posted at 1:00 AM ET

The Cyber Risk Handbook 2016 presents views from Marsh & McLennan’s cyber leaders and leading third-party experts with whom we collaborate on how companies can assess cyber risks, develop comprehensive strategies and align their people to bolster cyber risk management.

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November 23rd, 2016

Measuring Cyber Aggregation Risk

Posted at 1:00 AM ET

Julia Chu, Managing Director, Guy Carpenter and Ashwin Kashyap, Director of Product Management, Symantec Corporation

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Cyber risk is now an embedded feature of the global risk landscape, and preventative risk management and post-event remediation are gaining importance as shareholders, customers, supply chain partners, and regulators are increasingly focused on how companies are managing for cyber risks. Insurance is becoming an important piece of the strategy for helping businesses address these risks.

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November 22nd, 2016

Reserving and Capital Setting: Conclusion

Posted at 1:00 AM ET

The obvious response to the issues emerging risks provide is to make sure reserves and capital position are more than robust enough for any eventuality - however remote - and then release them when the risks fail to materialize. But, there are many arguments against this as a practical strategy:

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November 21st, 2016

Reserving and Capital Setting: The Crystalization of Emerging Risks, Part II

Posted at 1:00 AM ET

The chart below attempts to illustrate the solvency calculation issue. Suppose the best estimate is 20 and the assessment from modeling is that the 1-in-200-year ultimate loss is 100. If all else stays the same and with the simplifying assumption that the yield curve stays flat, one can say that the sum of the 1-year solvency capital requirements (SCRs) approximated the difference between 100 and 20 (i.e. 80). Yet, because of the discounting, when in time the change in own funds is recognized, is important. The black line represents a linear recognition pattern so the 1-year SCRs are all equal with increments of 10. The blue line represents a Binary Fast recognition so the first year SCR is 80 and the remaining years’ SCR are zero. This means that the deterioration is recognized quickly. The red line again shows binary recognition but with a slow pattern as the movement is only occurring toward the end of the liabilities’ life. The two curves in light blue and light red represent less severe versions of the binary forms.

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November 15th, 2016

Asia Pacific Catastrophe Report 2016: Executive Summary: Protection Gap

Posted at 1:00 AM ET

bromo-volcano-east-java-indonesia-smThe gap between uninsured and insured risk continues to be an issue for the region. Insurance and reinsurance penetration rates remain low in many Asian countries. As the chart below shows, purchases in catastrophe reinsurance limit have grown, but in actual value terms the majority of growth is in territories with the highest levels of protection already.

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October 27th, 2016

Analytics: Fueling Risk-Informed Decisions

Posted at 1:00 AM ET

tim_059_headshot Tim Gardner, CEO of U.S. Operations

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Today’s rapidly changing global environment presents insurers with many challenges and opportunities as capital management and risk transfer techniques evolve at an unprecedented pace. Stakeholders, regulators and ratings agencies are deepening their focus on risk management practices, and revolutionary developments in technology, including the Internet of Things and hyper-connectivity, are driving companies to adapt to the challenges that senior management faces to support risk management decisions material to their business.

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