Emphasis 2009/1

In this issue...

The global auto industry is unveiling new hybrid and alternative fuel vehicles in response to oil and general market volatility. Similarly, insurers are responding to demands for new products and more effective use of volatile capital markets and risk management tools. To succeed, ERM must become embedded in company culture and guide strategy. Risk appetite must be articulated. Risks from traditional and nontraditional lines of business must be aggregated for an overall understanding of company risk portfolios and required capital. Performance measurement must account for the trend toward market-consistent measures of asset and liability values. Use of reinsurance and alternative risk securitization must be optimized.

Property & Casualty Insurance

• Justifying Loss Liability Estimates

  By Douglas J. Collins and Kevin F. Downs

  Demands to justify loss liability estimates selected for reported reserves require better methodologies and data to make the process more transparent.

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  Financial Services

• Insurance-Linked Securities Reaching Critical Mass

  By Ernest Eng and Cormac Bradley

  Despite the financial crisis, the ILS market has more than held its own and appears poised for further growth.

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Enterprise Risk Management

• Financial Crisis: Time to Improve ERM

  By Prakash Shimpi

  The current economic crisis underscores the need to treat risk management as a strategic imperative, with a reassessment of company capabilities and specific steps to strengthen risk management culture.

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• What's Your Risk Appetite?

  By J. David Dean and Andrew F. Giffin

  With a clearly articulated risk appetite statement, management can form and control the enterprise risk portfolio and measure risk management performance.

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• Preparing Economic Capital for Decision Making

  By David Dullaway, Joe Lebens and Mark J. Scanlon

  Economic capital is becoming increasingly important to decision making, helping to transform the way business is done, make companies nimbler and deliver better results.

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The Last Word

• How Do You Deflate a Bubble Gently?

  By Steve Taylor-Gooby

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