Risk Management

Rising interest rates and the weakened economy have made public fixed income attractive to property and casualty insurers, who are shifting away from alternative assets to play in their comfort zones.

Central banks have hiked their base rates in response to inflation. For insurers, both sides of their balance sheet have been left exposed to risks, impacting profitability as the cost of claims increase and the value of investments fall. While geopolitical tensions and inflationary pressures continue to pose a threat to the global economic landscape, how can insurers mitigate the risk of inflation-driven exposures?

Strong ESG performance is no longer an optional credential for insurers: investors, raters and regulators all demand it.

The hard insurance market appears to be softening, with Airmic’s latest pulse survey identifying signs of ‘green shoots’ as the pace of rate increases slows

2022's Airmic ERM (Enterprise Risk Management) Forum held in London, provided risk professionals a networking platform to explore trends that are reshaping the enterprise risk management landscape, such as the impact of geopolitical tensions on supply chains as well as the increasing threat of cyber attacks as our world becomes more interconnected.

Airmic’s latest survey has identified that climate risk is not being prioritized among its members and that risk professionals are more concerned with managing severe short-term risks, such as flooding and tropical cyclones than the long-term impact of climate change.

Focusing on risk management is key to securing insurance in the changing yacht insurance market, according to marine specialists.

New modelling tools will enable insurers to capitalise on growing demand for supply chain insurance solutions, according to Guidewire’s Michael Dobrovolsky and Lewis Guignard

AXIS recently strengthened its focus on speciality lines. "Now is the moment for us to take advantage and deliver heightened value to our various stakeholders," says Tizzio.

There's been many changes in the wholesale and specialty market recently. Joining Meg Green to discuss the market is Carlton Maner, CEO of AXIS Wholesale.

How insurers can prepare for unexpected, unmodelled shock losses

As the world faces an onslaught of perils – from potential food and energy crises to inflation and political instability – much of the blame is being traced back to Ukraine.

Geospatial innovations are a game changer for the industry

This year’s Airmic conference was held between 6-8 June at the Arena Convention Centre in Liverpool under the theme ‘Moving Forward Together,’ with one of the key panel sessions addressing the impact of cyber risks on organizations and how they can better protect themselves.

As companies adjusted to employees working from home, and the experience of natural catastrophe striking new areas, the insurance industry is rethinking their claims processes, said Dave Chmiel, SVP, National Director of Claims North America, HUB International.

Join us 11 a.m. EST on August 24, for a free webinar offered in association with Guidewire

Risk managers need to continue to review and appraise the insured value of their properties to keep up with changing conditions, said Patrick Collins, managing director at Kroll.

As construction costs continue to rise, as many as 75% of properties may be underinsured, said Lori Flemming, managing director of fixed asset advisory services for Kroll.

Companies that fail to properly manage their diversity, equity and inclusion may face litigation and regulatory risk, said Julia Oltmanns, director of DEI Services for Zurich North America.

Lloyd's is expecting claims from the Ukraine/Russia war to be an earnings event, not a capital event, said Hank Watkins, regional director of the Americas for Lloyd’s. He spoke with Insider Engage at the RIMS conference in San Francisco.

Cyber insurers are working to marry risk management with cyber insurance to prevent losses before it happens, said executives at RIMS 2022 in San Francisco.

Insurers now know what the 'minimum' requirements are to make companies safer from cyber attacks, but still face systemic risks, said Dan Trueman, global head of cyber, AXIS Insurance. Trueman spoke with Insider Engage at the RIMS 2022 conference in San Francisco.

It may be impossible to stop cyber attacks altogether, but companies can take steps to become cyber resilient, said David Shluger, vice president, Cyber Risk Engineering, Zurich North America. Shluger spoke with Insider Engage at RIMS 2022 in San Francisco.

It is little wonder that brokers report that demand for political risk insurance has been on the rise in Latin America, and that underwriters have become wary of the risk.

Insurers must always lift their eyes towards the horizon and scan it carefully for emerging risks. The events of the last two years have reminded every insurer of the need to pay careful attention to the future -- pandemics, the impact of climate change, automation, technology and artificial intelligence, and now war in Europe -- all hold potentially devastating implications for insurers.

In September 2013, Chicago’s city council and then-Mayor Rahm Emanuel adopted a building energy benchmarking ordinance that aimed to raise awareness of energy performance as well as unlock energy and cost saving opportunities for businesses and residents. The ordinance, which was fully phased in by 2016, calls on commercial, institutional, and residential buildings larger than 50,000 sf to track whole-building energy, defined as the usage of electricity; natural gas; and any other fuels to operate both common and tenant-occupied spaces. The ordinance requires information to be reported to the city annually and verified every three years by a licensed in-house or third-party professional. The law covers less than 1% of Chicago’s buildings according to Chicago.gov, but roughly 20% of total energy consumed across the city. While the ordinance does not currently require building owners to make mandatory investments, a 2019 energy benchmarking report published in April 2021 revealed $24.6 million in annual energy reduction savings between 2016 and 2019 (approximately $74 million in total) and a 15% decline in carbon emissions per building sf over the period.

Before insurers can choose to retain, reduce or transfer cyber risk on their balance sheet, they need to understand the complexity and interconnectivity of the cyber risk, said Lori Bailey, chief insurance officer, Corvus.

What is the difference in perception and resilience amongst business leaders to environmental risks, and are businesses fully prepared for the associated risks – such as pandemic, climate change, environmental damage, food security and energy transition?

The best-attended and the most thought-provoking strategic event for (re)insurance professionals, executives and advisers involved with the London market was back on the 24th of November 2021.

When looking to employ risk engineering expertise to help them strengthen property protection and other risk mitigation strategies for equipment, fleets and more, business have a considered two options: to bundle or unbundle. But according to AXA XL Risk Consulting’s Jonathan Salter, there’s a third option.