International Insurance Society Roundtable on Risk Management after the Crisis

25 Pages Posted: 16 Dec 2009  

Geoffrey Bell

Geoffrey Bell and Company

Prem Watsa

affiliation not provided to SSRN

Bijan Khosrowshahi

affiliation not provided to SSRN

Brian Duperreault

affiliation not provided to SSRN

Nikolaus von Bomhard

affiliation not provided to SSRN

Abstract

In this roundtable, an adviser to several central banks and founding member of the Group of 30 discusses regulatory reform and corporate risk management strategies with senior executives from three of the world's largest insurance companies. Much of the discussion attempts to explain why insurance and reinsurance companies have proven less vulnerable to the crisis than commercial and investment banks. Part of the explanation has to do with their financial conservatism, which is attributed to a habitual tendency to decision-making that gives heavy weight to long-term probabilities and risks. But along with this “actuarial” cast of mind is a growing willingness to accept and make use of risk-based capital requirements - a decision-making framework that is, in some respects, in conflict with the accounting and regulatory capital conventions that still prevail in the industry. In particular, “Solvency II” - the risk-based capital guidelines that are set for adoption in 2012 by insurers in the European Union - is held up as a possible model for global use.

Suggested Citation

Bell, Geoffrey and Watsa, Prem and Khosrowshahi, Bijan and Duperreault, Brian and von Bomhard, Nikolaus, International Insurance Society Roundtable on Risk Management after the Crisis. Journal of Applied Corporate Finance, Vol. 21, Issue 4, pp. 28-51, Fall 2009. Available at SSRN: https://ssrn.com/abstract=1523983 or http://dx.doi.org/10.1111/j.1745-6622.2009.00248.x

Geoffrey Bell (Contact Author)

Geoffrey Bell and Company

New York, NY
United States

Prem Watsa

affiliation not provided to SSRN

No Address Available

Bijan Khosrowshahi

affiliation not provided to SSRN

No Address Available

Brian Duperreault

affiliation not provided to SSRN

No Address Available

Nikolaus Von Bomhard

affiliation not provided to SSRN

No Address Available

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