The CRO Forum’s Emerging Risk Initiative continually scans the horizon to identify and communicate emerging risks facing the insurance industry. The Emerging Risk Initiative identified the current major trends and emerging risks which are expected [...]
In addition to its commitment to the Solvency II project, the CRO Forum maintains its focus on the promotion of best risk management practices by unraveling potential threats to the industry.
The Chief Risk Officer (CRO) Forum's Emerging Risk Initiative is committed to continuously improving risk management. This paper advocates as best practice a process whereby insurers and reinsurers re-examine their assumptions about frequency, severity, loss trends and how the risks in their portfolios are interconnected and generally stress test their internal processes for hitherto "unthinkable" dimensions of risks. The paper seeks to address rating agencies, analysts, governments, regulators, intermediaries and risk modelling firms alike. This study is non-binding and for reference purposes only.