Description: Part 2 of a six-part series on the evolution of risk management continues with this article on dynamic financial analysis.

Description: Enterprise risk management (ERM) has grown fast in the 21st century, thankful due to a variety of extreme yet unfortunate risk events and regulatory changes. However, challenges continue with many other initiatives competing with ERM for resources within an organization. In this month’s newsletter, we revisit this old yet still important topic and bring a few relevant reports to your attention.

Description: Combinations of risks are an important component of the Survey of Emerging Risks, now in its 15th iteration. Also known as risk clusters or compound risks, the most popular in the survey define threat multipliers, where a risk makes other risks worse. The top risks chosen are trended for the last 10 years, showing interesting cycles and discontinuities.

Description: The Federal funds rate increased by 4.25% in 2022 with further increases in 2023, which have already resulted in a liquidity crisis for a few banks. As the rapid increase of the interest rates pushed the new money rates above the yields of many life insurers’ investment portfolios, insurance companies are facing a dilemma between compressed margins from peer pressure and the concern with liquidity shortfalls and realized capital losses should mass surrenders happen. This paper discussed main emerging risks under rising interest rate environment, and several ways to mitigate these risks.

Description: The 2024 Dangerous Risks survey shows respondents react to recent increases in "old favorite" risks as technology evolves and the environment moves away from the pandemic.

Description: The Federal funds rate increased by 4.25% in 2022 with further increases in 2023, which have already resulted in a liquidity crisis for a few banks. As the rapid increase of the interest rates pushed the new money rates above the yields of many life insurers’ investment portfolios, insurance companies are facing a dilemma between compressed margins from peer pressure and the concern with liquidity shortfalls and realized capital losses should mass surrenders happen. This paper discussed main emerging risks under rising interest rate environment, and several ways to mitigate these risks.

Description: This article provides an introduction to group supervision and group capital and its importance in today's increasingly global insurance market. Additionally, the article examines the various methods used in practice for calculating group capital and the factors that companies should consider as they develop their group capital management strategy.

Description: The article is authored by the chair of the Joint Risk Management Section and provides an update of recent changes relevant to members of the council, as well as interested non-members.

Description: Chairperson's introduction to the Joint Risk Management Section (JRMS) February 2022 Risk Management newsletter. Includes a brief description of the JRMS section, summarizes the portfolio of benefits and continuing education opportunities available for those in the risk management profession, discusses the role of the JRMS Council to lead the efforts to provide those benefits and touches on changes underway.

Description: Our goal in this article is to dive deeper into the role longevity swaps could play in the US PRT market by drawing comparisons to the UK and highlighting recent commercial developments that can jump start the US market’s need for longevity reinsurance.