Tag Archives: guides

Guide to ERM: Risk Management Disclosures

show your cards

U.S. insurers have made the case to the insurance regulators at the National Association of Insurance Commissioners (NAIC) who have been drafting the U.S. Own Risk and Solvency Assessment (ORSA) requirements that the ORSA report as defined will contain sensitive … Continue reading →

Guide to ERM: Change Risk

turn arrow

The main processes for enterprise risk management in an insurer involve two levels of control cycles: The first level looks at the individual risks and sets out limits, controls and mitigation processes to assure that each individual risk that is … Continue reading →

Guide to ERM: Risk Management Culture

working group

The culture of a business can be easily observed in the statements and policies of top management and in the behaviors of management and employees. But to truly understand the culture of a business you need to know the shared … Continue reading →

Guide to ERM: Risk Governance

board

What should a board expect from management regarding risk and resiliency? As a part of strong enterprise risk management practice the board of directors should consider the following: Continue reading →

Guide to ERM: Risk Capital

Ben-brella

Knowing the amount of surplus an insurer needs to support risk is fundamental to enterprise risk management (ERM) and to the own risk and solvency assessment (ORSA). With the increasing focus on ERM, regulators, rating agencies, and insurance and reinsurance … Continue reading →

Guide to ERM: Policies and Standards

traffic signs

Risk management policies are nothing more and nothing less than a clear statement of what the insurer intends to do within its ERM program. The entire set of risk policies can be all included in one consolidated corporate risk policy … Continue reading →

Guide to ERM: Risk Organization

Org Chart

Some say that in a perfect world, there is no need for a separate risk organization. But that is probably not true.  Besides, we do not live in a perfect world anyway. There are four common organizational steps that insurers … Continue reading →

Guide to ERM: Risk Limits and Controls

Traffric Cones

At the most fundamental level, enterprise risk management can be understood as a control cycle. In an insurance company’s risk control cycle, management needs to first identify the key risks. Continue reading →

Excess of Loss Reinsurance: Per-Risk Contracts

In my previous blog in this series we explored the rationale behind excess of loss rating by looking at a facultative excess of loss placement.  Now I want to move to the other side of the family tree and look … Continue reading →

Another Level of Protection: What is a Reinsurance Treaty?

Just about all insurers, whether they are companies, Lloyd’s syndicates or mutual associations, need reinsurance. It protects the insurer’s capital base against the adverse effects of large individual losses or irregular loss patterns such as may be caused by natural … Continue reading →