Creating a risk appetite framework for insurance decision-making
Abstract
European insurance companies have made enormous strides in risk management technology in recent years, and many companies are now much better equipped to monitor, measure and manage the risks associated with the insurance coverages and guarantees they provide. However, most insurance companies are much less sophisticated in analysing the broad parameters of the enterprise risks they are confronting. Many companies are not easily able to assess the risk-return equation they face in existing businesses or in businesses they might like to enter. Companies can develop and implement a risk appetite framework that will help assess the risks as well as the potential rewards that proposed lines of business seem to offer. This tool can provide enormous value in analysing existing activities and informing the process of identifying growth opportunities.
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Author's Biography
Lukas Ziewer is a consultant within Oliver Wyman’s Insurance practice. Lukas has worked in depth with major European insurance and banking groups, specialising in financial and risk management. Lukas joined Oliver Wyman in 2004 after having worked for another leading strategy consultancy.
Anthony Bice is a director within Oliver Wyman’s Insurance practice. Anthony has worked with major European insurance groups, specialising in the measurement and management of economic risk, capital and value. Anthony joined Oliver Wyman in 2004, having previously spent nine years as a consultant with a leading actuarial consultancy in London and Sydney.
Citation
Ziewer, Lukas and Bice, Anthony (2007, December 1). Creating a risk appetite framework for insurance decision-making. In the Journal of Risk Management in Financial Institutions, Volume 1, Issue 1. https://doi.org/10.69554/CFGF7809.
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