Partner, KPMG in the UK
The world is becoming increasingly ‘tightly coupled’, with financial risk and insurance risk more closely interconnected. As a result, current approaches to capital management and risk modeling will need rethinking. A more developed understanding of interconnectivity, particularly of tail risks, may lead to a better understanding of exposures and enable more accurate pricing and more effective loss prevention. This greater clarity and transparency, however, is accompanied by further risk if customers are not prepared to pay for the economic cost of the protection they seek.
Key business issues that insurers must consider:
- Is insurance investable?
- Exposure of increasingly wealthy urban areas to natural catastrophes and emerging risks such as climate change and pandemics
- Historically low investment yields and volatile markets necessitate a search for innovative long-term investments
- The regulatory agenda continues to evolve
To stimulate the debate on these complex and far-reaching issues, we invite you to join the conversation
We want to hear your views
- Do you feel policy makers and regulators have a good grasp of the industry – and the vital social and economic role played by insurance
- What progressive models do you see adapting to a low interest rate environment