Annual Meetings-Session II: CAT Management: Risk Management Practices and Inland Marine Exposures: Holistic Frameworks

Session II: CAT Management: Risk Management Practices and Inland Marine Exposures: Holistic Frameworks

Pdf Summary

At the IMUA Meeting on May 7, 2012, M. Mark Cravens discussed risk management practices and inland marine exposures, focusing on developing adequate pricing through understanding the relationship between exposure and risk. Models are crucial for consistency and identifying key relationships, although some risks are challenging to model. A holistic framework approach was proposed to capture exposure consistently, identify risks, and manage them proactively. The discussion highlighted emerging methods for describing exposures, hazards, and contract interactions. Different elements of risk management were examined, such as exposure description, hazard identification, correlations, and quantification. The presentation also delved into specific examples like DIC risk, fine arts, and mobile equipment exposures, outlining the challenges and fit for modeling frameworks. Additionally, the importance of portfolio profiling, control over core information, understanding hazard interactions, and risk quantification for differentiating exposure risks were emphasized. The evolving landscape of exposure description, contract terms, and capabilities for handling complex exposures were also discussed. Overall, a consistent framework enables a more comprehensive treatment of exposure data and risk assessment, allowing for improved understanding, correlation, and quantification of risks and exposures.

Asset Caption

Presented by:
Mark Carvens, Vice President Underwriting & Data Solutions RMS

Keywords

IMUA Meeting

risk management practices

inland marine exposures

adequate pricing

relationship between exposure and risk

holistic framework approach

exposure description

hazard identification

quantification of risks

portfolio profiling