Global

Regulation and Capital Management 

The world is becoming increasingly ‘tightly coupled’, with financial risk and insurance risk more closely interconnected.

Regulation and  capital management

“We are already seeing the more forward-looking insurers starting to adjust their investment profiles and risk models.  Low interest rates may constrain those who have not already done so.”

 

 

Francesca Short,
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

 

  1. Do you feel policy makers and regulators have a good grasp of the industry – and the vital social and economic role played by insurance
  2. What progressive models do you see adapting to a low interest rate environment

Share this

Share this

Creating Value from Opportunities in a Changing World

Creating value rollup
Intelligent insurer considers external forces that will impact their business model over the next 10 years, including shifts in demographics, the environment, new technology and changing social values and ethics