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‘Reinsurance & the Pacific Region – additional information’
The document discusses the financial management of climate risks in the Pacific region, focusing on the role of reinsurance in balancing risk and capital management. It outlines different types of reinsurance, their applications, and factors influencing the choice of reinsurance, such as market conditions and regulatory requirements. Additionally, it highlights the importance of catastrophe modeling and the evolving landscape of the reinsurance market amidst increasing climate-related losses.
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‘Reinsurance & the Pacific Region – additional information’
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- 2. Pacific Dialogue on Financial Management of Climate Risks Additional Information • Risk & Reinsurance • Types of Reinsurance •The Reinsurance Market • Application of Reinsurance • Evolution of Reinsurance © 2017 inuRE. All rights reserved. 1
- 3. Risk & Reinsurance What is Risk? Definition The future often cannot be predicted with certainty The extent to which an outcome of a particular situation cannot be predicted can be said to be the risk inherent in the situation Examples A burst pipe in a neighbour’s home causes a water leak which damages your property A driver is not concentrating and drives into the back of your car, causing damage which needs repair © 2017 inuRE. All rights reserved. 2 Attitudes to Risk? Ignore Unaware of the risks → Important to have a risk focus Assume Take no action Avoid Cease the activity which gives rise to the risk Prevent Take measures to reduce the risk Mitigate Take measures to limit adverse effects Transfer Pass on the exposure to risk → (Re)insurance Practical? Find a balance Ultimately, it’s all about our risk attitudes and what we decide to do with risk – there is no one right answer and our approach can depend on our circumstances and what we want to achieve
- 4. Risk & Reinsurance • An insurer’s capital must be appropriate for its specific risk profile and risk appetite • Risk capital acts as a buffer against unexpected losses •It is important to match capital and risks assumed • If a mismatch happens, there are some approaches we can take: o Raise capital o Reduce underwriting and investment risks Ø Buy reinsurance Ø Change investment policy Ø Change underwriting guidelines © 2017 inuRE. All rights reserved. 3 Reinsurance = Capital Management Reinsurance = Claims Reality Losses will occur! Claims = our service, our product! Clients expect professionalism Issues vary for different business An increasing need for protection? Recent years Global climate change Increase in insurance mega losses Volatility in equity markets Emerging risks
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- 6. Reinsurance can help with Balance sheet Operating performance Business profile Balance sheet adequacy / leverage / structure Adequacy / composition of historical earnings Risk diversification, management, and reinsurance Loss reserve adequacyProspective earnings Management objectives and experience Quality and appropriateness of reinsurance program Accident year results Board oversight and participation Quality and diversification of investments Expenses Enterprise risk management process Liquidity and financial flexibility Sustainability of results Country profile of economic, political, and financial risk Risk & Reinsurance © 2017 inuRE. All rights reserved. 5
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- 9. Types of Reinsurance Proportional Quota Share Sharing of a fixed proportion of every risk accepted by the ceding company Surplus Sharing of the surplus liability over the ceding company’s retention of every risk accepted by the ceding company Facultative / Obligatory An insurer has the option to cede, and a reinsurer is bound to accept, the surplus liability over the ceding company’s retention Non-Proportional Per Risk Large individual losses Catastrophe Losses arising from one event Stop-Loss / Aggregate Aggregation of losses from one business class © 2017 inuRE. All rights reserved. 8 Proportional reinsurance Sharing original risk Non- proportional reinsurance Reinsuring the loss
- 10. Types of Reinsurance Choosing Reinsurance – some key questions What class of business is being covered? Which type of reinsurance might provide most profit over a period? What is the optimal balance between risk transfer and retention? What is the historical loss pattern of the portfolio? Would retaining much more premium create solvency problems? What are the current and potential future regulatory requirements? Is the preference for longer-term proportional arrangements or for traditionally shorter-term non-proportional arrangements? What is the current state of the reinsurance market? The best course of action is usually not to go 100% down the proportional route or 100% down the non-proportional route, but rather employ a mixture of the two © 2017 inuRE. All rights reserved. 9 Quick checklist Establish business covered & volumes Main exposures –Risk / Catastrophe ? Profitability of portfolio Companies expenses Available capital Remember You need to decide your rationale for buying reinsurance All factors will affect programme design - some more than others Success of the programme depends on careful planning Do you know with absolute confidence how your reinsurance will respond to losses? No single right answer !
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- 15. The Reinsurance Market © 2017 inuRE. All rights reserved. 14 Lloyd’s of London - key facts & figures (latest available data) Syndicates97 Accredited Brokers > 242 Managing Agents 59 Global reach > 200 countries & territories worldwide (expanding presence into emerging markets such as China, Latin America, India & Middle East) Financials Profit before tax = £2.1bn (2015); £3bn (2014) Combined Ratio = 90% (2015), 88.4% (2014) Gross Written Premium = £26.69bn (2015); £25.26bn (2014) Business mix Reinsurance = 32% (in terms of premiums) Largest region = US & Canada (47%) Security A+ (S&P); AA- (Fitch); A (AM Best)
- 16. The Reinsurance Market Event Year Cost (2015 USD Values) Hurricane Katrina2005 $80b Japan EQ/Tsunami 2011 $37b Hurricane Sandy USA 2012 $36b Hurricane Andrew 1992 $27b 9/11 2001 $25b Northridge Earthquake USA 1994 $24.5b Hurricane Ike 2008 $22b Hurricane Ivan 2004 $16b Thailand Floods 2011 $16b New Zealand Earthquakes 2011 2010 $16b $5b © 2017 inuRE. All rights reserved. 15 Largest Global Insurance Losses Source: Swiss Re sigma No. 1/2016
- 17. The Reinsurance Market © 2017 inuRE. All rights reserved. 16 Global Insurance Losses World Insured Catastrophe Losses, 2006-2015 (USD million in 2015 prices) Source: Swiss Re * Aon Year Weather-related natural catastrophes Man-madeEarthquakes Total 2006 $14,699 $5,991 $95 $20,786 2007 26,876 6,596 640 34,113 2008 48,330 9,231 464 58,025 2009 23,747 4,338 673 28,758 2010 32,309 5,186 14,671 52,167 2011 69,311 6,768 56,486 132,564 2012 72,236 6,067 1,765 80,068 2013 36,569 7,866 46 44,480 2014 28,384 7,045 313 35,741 2015 27,279 8,983 510 36,772 2016 54,000 *
- 18. The Reinsurance Market © 2017 inuRE. All rights reserved. 17 Aon Benfieldestimates that global reinsurer capital rose by 5.3 percent to a new high of USD595 billion over the nine months to September 30, 2016. This calculation is a broad measure of the capital available for insurers to trade risk with and includes both traditional and alternative forms of reinsurer capital. Equity capital available to support reinsurance underwriting is at peak levels and debt continues to be available on very favorable terms. As a result, ample capacity currently exists to meet expected reinsurance demand. Exhibit 1: Change in global reinsurer capital USD(billions) Alternative CapitalTraditional Capital Global Reinsurer Capital 0 100 200 300 400 500 600 9M 2016FY 2015FY 2014FY 2013FY 2012FY 2011FY 2010FY 2009FY 2008FY 2007FY 2006 17 368 385 22 388 410 6% -17% 18% 18% -3% 11% 7% 6% -2% 5% 19 321 340 22 378 400 23 447 470 27 428 455 44 461 505 50 490 540 64 511 575 72 493 565 78 517 595 Source: Aon Benfield Analytics Source: Aon Benfield Analytics Aon Securities Inc. Alternative capital focuses on collateralized reinsurance Insurance risk continues to attract capital market investors. Expected returns have declined, but remain attractive relative to other available opportunities, and low correlation with other asset classes (except in the most extreme scenarios) remains a key consideration. Alternative capital rose by 9. percent to USD78 billion over the nine months to September 30, 2016, principally reflecting additional deployment into collateralized reinsurance structures. Certain maturing catastrophe bonds did not renew during 2016 and, as a result, new issuance fell to USD6.0 billion, from USD6.9 billion in 2015. Exhibit 3: Alternative capital deployment 0 10 20 30 40 50 60 70 80 9M'16'15'14'13'12'11'10'09'08'07'06'05'04'03'02 SidecarCat Bonds Collateralized Re Valuation: Price to Book ILW Limit(USDbillions) Source: Aon Securities, Inc. USD 595bn capacity, USD 78bn from alternative sources Overall capacity increased by 5% Alternative capacity increased by 9.6% Distribution of Alternative Capacity
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- 20. The Reinsurance Market Struggling to Stabilise 50% increasein insured losses from natural catastrophes during 2016, but Global reinsurance industry remains profitable Continued capital oversupply from both traditional reinsurers and capital markets Reinsurer hopes of rate stabilisation not materialising Continuing Soft Market Signs that reinsurers are not prepared to be as flexible as in earlier years, but Many buyers have yet again managed to achieve improved terms Sizeable reductions have been obtained on international business Market Fragmentation Greater fragmentation of market pricing by territory, class and specifically, by client Major reinsurers are taking stronger client-centric approaches (active portfolio management strategies and more client-specific outcomes) Alternative capital continues to expand, placing pressure on rates Evolving Landscape Capital efficiency and earnings protection are the key drivers of reinsurance purchase Reduced pace of consolidation, but M&A activity continues Evolution of reinsurer business models (e.g. new sidecars) Continued pressure on insurers (competition and disruptive changes such as InsurTech) Reinsurers and Capital Markets accessing the primary market Market consolidation and soft market expected to continue throughout 2017 © 2017 inuRE. All rights reserved. 19
- 21. Application of Reinsurance Financial • Paid-up capital & reserves • Investment & liquidity policy •Solvency requirements • Efficiency • Cost Business & operational • Management & underwriting capability • Location of operation • Future marketing plans • Risk appetite © 2017 inuRE. All rights reserved. 20 Portfolio • Size & structure of portfolio • Size & frequency of losses • Classes & locations of policies • Availability & balance • Need? External • State of the Reinsurance market • Regulation • Investors • Analysts & rating agencies • All stakeholders
- 22. Application of Reinsurance Question: which types of reinsurance are best for your organisation? The core factors influencing the choice of reinsurance will include: Efficiency: which types of reinsurance can best help you to meet your business objectives? Exposures:which types of reinsurance can best protect you against potential losses (needs to be constantly monitored as our understanding of exposure potential is always improving) Availability: for which types of reinsurance is the best support and pricing available (this constantly changes in a dynamic market) Answer: You might use a combination of different types of reinsurance Using a combination of different types of reinsurance might help you to achieve a balance approach © 2017 inuRE. All rights reserved. 21
- 23. Application of Reinsurance © 2017 inuRE. All rights reserved. 22 Aim to achieve the desired and required balance between risk retention and transfer: Not enough reinsurance vs. too much reinsurance, driven by - – Attitudes to risk –Internal capital requirements (how much capital are you prepared to put at risk?) – Regulatory requirements What is the cost and availability of different types of reinsurance? – What price are you prepared to pay for reinsurance? – What terms and conditions are acceptable? Which is the most efficient combination of reinsurances to help you to achieve your business objectives? – What is the scope and nature of your portfolio and exposures? – Analytical modelling with respect to agreed parameters (e.g. return periods, solvency, underwriting result, profitability, capital allocation)
- 24. Application of Reinsurance Core Considerations: • Accurate and transparent data • Clear and concise information •Detailed statistics • Consistent approach • Unambiguous assumptions • Claims history • Commentary on past experience, current conditions and future business strategy • Quantitative & Qualitative analysis • Electronically available (and not just pdf!!) © 2017 inuRE. All rights reserved. 23 Underwriting Criteria and Guidelines
- 25. Application of Reinsurance Qualitative factors: • Client business strategy and positioning • Underwriting and structural changes •Management integrity and mutual trust • Above or below average historical performance • Original policy terms and conditions • Client / reinsurer relationship © 2017 inuRE. All rights reserved. 24 Underwriting Criteria and Guidelines Quantitative analysis: • Probabilistic vs. Deterministic models • Bespoke models vs. 3rd party Vendor models • Actual experience vs. modelled output • Uncertainty factors (standard deviation) • Benchmarking • “Unmodellable” events and territories – terrorism (bio-chem), strikes, riots and civil commotion, ice storm, volcanic ash?
- 26. Application of Reinsurance Deterministic (scenario) analysis • Estimates the number of expected losses arising from specific loss occurrences. • Assesses the severity of a loss arising from a peril, but does not take account of the likelihood of occurrence. Stochastic (probabilistic) analysis •Takes account of the probability attached to various outcomes. • Instead of dealing only with one possible 'reality' of how the process might evolve under time (i.e. the possible size of a loss arising out of a peril), it also examines the range of possible outcomes. © 2017 inuRE. All rights reserved. 25 Catastrophe Modelling
- 27. Application of Reinsurance © 2017 inuRE. All rights reserved. 26 Hazard VulnerabilityExposure e.g. Cyclone windsPortfolio location and type Interaction of hazard with building Model Output Insurance conditions Used as guides for monitoring and pricing catastrophe exposed accounts. Probabilistic modelling to determine potential annual mean losses up to street level. • In reinsurance, losses are aggregated to the portfolio level and impacts to catastrophe and risk programs are assessed. • Outputs – Occurrence Exceedance Probability (OEP) o 1 in 200 year is the measure used in Australia by APRA o The same as a 0.5% probability of exceedance in any one year Catastrophe Modelling
- 28. Application of Reinsurance © 2017 inuRE. All rights reserved. 27 Some Criteria: • Solvency & rating •Reputation • Consistency • User friendliness • Prices, terms and conditions • Claims paying willingness and ability Selecting Reinsurers Business Sourcing Broker >> Client Client Meetings Underwriter >> Broker >> Client The “Broke” Broker >> Underwriter Rating Underwriter >> Modellers Negotiation Client >> Broker >> Underwriter Firm Order Terms Broker >> Client The Decision Underwriter Policy Issuance Declinature • Technical expertise • Diversity and spread • Service & value added • Long-term relationships • Commercial reasons • Additional services • Face-to-face meetings
- 29. Application of Reinsurance Approaches to Risk Will determine the need or desire for reinsurance This will be different for different people & companies Functions of Reinsurance Primary & secondary functions – depending on what you wish to achieve Why we ultimately buy reinsurance – Capital Management & Claims Types of Reinsurance Each type of reinsurance can provide a different solution Understand how different types of reinsurance operate and their servicing requirements Choice of Reinsurance Depends on your circumstances and what you wish to achieve Advantages and disadvantages associated with different types of reinsurance Solutions can be achieved by combining different types of reinsurance Our Environment Know the market! Know what is available –where and how Understand the market dynamics Understand what we are able to place © 2017 inuRE. All rights reserved. 28
- 30. Evolution of Reinsurance • Global (overweight US) • Predominantly equity funded •Ability to leverage • Crave diversification • Might want a 15% return © 2017 inuRE. All rights reserved. 29 • To date … US (and cat) focused • Inability to leverage • Diversification largely ignored • Pension fund and other money • Might want a 6% return Traditional Model Alternative Model What happens if: • The alternative markets continue to gain share in the US? • ILS markets start to leverage capital? • Traditional markets do not change? • Interest rates rise? The New Capital Revolution? • Parametric Trigger • Named Perils • Single Shot • USD denomination • Trust/SPV in appropriate location Investors might like … Regulators might like … • Fully indemnity cover • All perils • Reinstatement • Local currency • Collateral under their jurisdiction Not insurmountable … but requires a bit of innovation and thought
- 31. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 30 Recent M&A Activity *Zurich pursuitof RSA is an example of a failed Merger & Acquisition. Zurich cancelled their bid due to internal issues $10+ Billion $5+ Billion $2+ Billion $1+ Billion Mkt. Cap. 0 0
- 32. Evolution of Reinsurance Knockout Punch 1. Mega Cat 2. Financial System Shock 3.Risk Management Shortfall 4. Hyperinflation 5. Model Error © 2017 inuRE. All rights reserved. 31 Top 10 Threats to Reinsurer Security Slow Painful Death 6. Regulation 7. Alternative Capital 8. Emerging Underwriting Risk 9. Interest Rate Spike 10. Loss of Talent/Entrepreneurial Spirit
- 33. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 32 Difficult to insure risks Risk Potential CausesSome Issues BUSINESS INTERRUPTION Natural Perils, Supply Chain failure Contingent Business Interruption CASUALTY CATASTROPHE Pollution, Health Hazard, Legislation Under-reserving, unknown exposures CYBER Systemic and Contagion Risk Unknown exposures, silent coverage DRONES Cyber Risk, Mechanical / Pilot error Privacy, lack of regulation FLOOD Climate Change Insufficient planning, affordability MEGA STORMS Climate Change Population densities, availability TERRORISM Political and Social Unrest Limited coverage, increased mobility
- 34. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 33 Some potentially uninsurable risks REPUTATION GM: 30mcars recalled; lawsuits relating to delayed recall of 2.6m cars VW: Intentionally manipulating emissions tests REGULATION 2012: 17,763 changes to laws, rules and regulations affecting the banking and financial sectors alone (US) Regulatory risk is handled through risk mitigation, not risk transfer TRADE SECRET What insurance policy could adequately protect against theft or wrongful disclosure of trade secrets and the potential damage arising? POLITICAL Political violence and trade credit coverage is available, but uninsurable exposures remain – e.g. currency devaluation, nuclear incident, non-payment of premium, losses to suppliers / partners from political violence PANDEMIC No real coverage for pandemic flu – perhaps advisable to formulate non- insurance risk management solutions OTHERS? High taxation; loss of customers/cancelled orders; material prices
- 35. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 34 Some key considerations for government involvement PURPOSEState programmes provide affordable coverage in high risk areas DYNAMICS Could subsidising insurance coverage in high risk areas discourage private insurance? Might reliance on state programmes inadvertently encourage further development and population growth in areas with high natural catastrophe risk? RISK ALLOCATION Are required premiums sufficient and risk-adequate? Does an increasing burden shift to the taxpayer? ENGAGEMENT Do state programmes encourage or discourage risk mitigation? Does government involvement promote or discourage policyholder risk awareness? CAPITAL Is there an over-reliance on state guarantees / bonds to subsidise low premiums? Does emphasis move to post-event funding rather than risk transfer (i.e. (re)insurance)?
- 36. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 35 • CitizensProperty Insurance Corporation and Florida Hurricane Catastrophe Fund: founded in August 2002 because private insurers were unwilling or unable to provide affordable property insurance coverage. • US National Flood Insurance Program (NFIP): established in 1968, enables property owners in participating communities to purchase flood insurance at heavily subsidised rates in exchange for state and community floodplain management, regulation and enforcement that reduce future flood risks. • French Catastrophes Naturelles (CatNat): founded in 1982, private insurers are responsible for covering the flood risks, while the main role of the government is to provide reinsurance and establish natural disaster prevention and mitigation plans. Government / State Schemes
- 37. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 36 • Floodinsurance in the UK: following 2007 floods, private flood insurance programme developed without government subsidy; government involvement in strengthening surface water management infrastructure to enable affordable private insurance; Flood Re enacted 11/11/15. • Japan Earthquake Reinsurance Co Ltd (JER): owned by Japanese non-life insurance companies, covers losses to residential buildings and contents due to earthquake, volcanic eruption or tsunami, including fire following such an event; private insurers and the JER pay first losses per event up to an aggregate USD 1.4 bn; the government pays half of the losses exceeding USD 1.4 bn and 95% of losses exceeding USD 10.5 bn up to USD 66.3 bn. Government / State Schemes
- 38. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 37 • TaiwanResidential Earthquake Insurance Fund (TREIF): founded following 1999 Chi-chi earthquake; a public non-profit organisation; insures residential buildings against fire, explosion, landslide, land subsidence, land movement, land rupture, tidal wave, surge and flood caused by earthquake; private insurers assume up to USD 85m, TREIF next USD 520m (remainder divided between reinsurers, capital markets, TREIF and government). • The Turkish Catastrophe Insurance Pool (TCIP): founded in 2000 following major earthquakes and initially funded by World Bank; overs building damage due to earthquake and fire, explosions, landslide and tsunami following earthquake; policies distributed through insurance companies and agents. Government / State Schemes
- 39. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 38 • CaliforniaEarthquake Authority (CEA): founded in 1996 as a response to the drying up of homeowners’ insurance capacity in the market following the Northridge Earthquake in 1994, which cost more in claims paid for the insurance industry than it had collected in earthquake premiums over the preceding 30 years; CEA writes over 65% of all residential earthquake policies. • NZ Earthquake Commission (EQC): a Crown entity, established under the Earthquake Commission Act 1993, providing EQCover for home, land and contents if a private insurance policy includes fire insurance cover. Government / State Schemes
- 40. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 39 Some potential future regulatory developments BIG BANG? Currentlybelieved that there are no ‘big bang’ regulatory surprises in store for insurers – more likely to be subtler changes SENIOR EXECS Targeting senior executives for the wrongdoings of their firms, to encourage greater responsibility INDIVIDUALS Start fining individuals, rather than firms, as well as increasing management scrutiny generally CONSOLIDATION Consolidation of regulation of the different kinds of financial institutions - insurers, banks, brokerages, individual traders, oil and gas companies GLOBAL ICS Movement towards global insurance capital standard (ICS) – consistency in the assessment of global insurance groups OPERATIONS More focus on the actual operational issues of companies including structure, compensation, marketing, and products SIGNIFICANCE Will some insurers be designated as systemically significant – what will this mean for those insurers and the insurance industry at large?
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- 42. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 41 What are industry leaders talking about? Low Interest Rates Prolonged low-interest-rates,leading to reduction in investment earnings and increased importance of underwriting profitability Consolidation Pressure on the market in terms of availability of products until the inevitable market reset due to a significant loss event Buying Trends Increased retentions and buying consolidation leading to a shrinking of the market Capital Adequacy Evolving capital models placing pressure on some companies which lack diversification Cheap Capital Central banks making available cheap capital, thus encouraging companies to leverage up on debt Demand Increasingly strong balance sheets leading to reduced demand for reinsurance Emerging Markets Capital moving into these markets to generate business – with inferior data and risk understanding – will push down rates in such markets Combination A combination of the above factors plus increased catastrophe experience will place pressure on the supply of capacity
- 43. Evolution of Reinsurance What are industry leaders talking about? Innovation Is doing the same thing faster the right way forward? Not just about operational innovation, but providing solutions for an evolving world Consolidation Agile reinsurers that are close to their markets can differentiate themselves by providing solutions Relevance Reinsurers able to engagewith cedants on both a global and local basis, across a range of protections Support Companies are looking for support in terms of enterprise risk management, capital management and reinsurance structuring Alternative Capital Traditional reinsurers engaging alternative capital into their underwriting structures to provide various solutions Emerging Risks Companies who benefit will be those who are prepared to invest and take time to identify and understand risks Insured Risk Gap Helping to bridge the gap between economic and insured losses, both in emerging and developed markets Balance Blending the new world with the best practices of the old world – but focus on relationships to allow for trading through ups and downs © 2017 inuRE. All rights reserved. 42
- 44. Evolution of Reinsurance © 2017 inuRE. All rights reserved. 43 • Investment in infrastructure, power and construction projects in emerging territories. •Increasing demand for insurance and increasing consumer awareness in emerging territories. • Development of reinsurance as part of an integrated approach to risk management in developed economies. • Development of culturally appropriate business philosophies. • Targeting previously disadvantaged or excluded groups - e.g. micro-insurance. • Shortage of skilled personnel and need to educate. Some Future Challenges
- 45. Sources & Acknowledgements 44© 2017 inuRE. All rights reserved. § DLA Piper: IUA Market Briefing (March 2013) § https://agenda.weforum.org/2014/10/regulations-global-insurance-industry-systemic-risk/ §https://crawford.anu.edu.au/sites/default/files/events/attachments/201607/pacific_islands_climate_change_insurance_facility_anu.pdf § KPMG: Evolving Insurance Regulation (April 2015) § Lloyd’s of London § “Making a Market for Acts of God: The practice of risk-trading in the global reinsurance industry” (Paula Jarzabkowski) § Munich Re § OCHA § Swiss Re § The United Nations Office for Disaster Risk Reduction (UNIISDR) § The World Economic Forum: Global Risks 2015 report § Willis Re § www.carriermanagement.com § www.ey.com/GL/en/Industries/Financial-Services/Insurance/Business-Pulse--top-10-risks-and-opportunities-2013-15 § www.riskandinsurance.com/top-five-uninsurable-risks/ § www.standardandpoors.com/ratingsdirect § www.strategic-risk-global.com
- 46. Disclaimer 45© 2017 inuRE. All rights reserved. This analysis hasbeen prepared by inuRE Reinsurance Training & Solutions (“inuRE”) on condition that it shall be treated as strictly confidential and shall not be communicated in whole, in part, or in summary to any third party without written consent from inuRE. inuRE has relied upon data from public and/or other sources when preparing this analysis. No attempt has been made to verify independently the accuracy of this data. inuRE does not represent or otherwise guarantee the accuracy or completeness of such data nor assume responsibility for the result of any error or omission in the data or other materials gathered from any source in the preparation of this analysis. inuRE shall have no liability in connection with any results, including, without limitation, those arising from based upon or in connection with errors, omissions, inaccuracies, or inadequacies associated with the data or arising from, based upon or in connection with any methodologies used or applied by inuRE in producing this analysis or any results contained herein. inuRE expressly disclaims any and all liability arising from, based upon or in connection with this analysis. inuRE assumes no duty in contract, tort or otherwise to any party arising from, based upon or in connection with this analysis, and no party should expect inuRE to owe it any such duty. There are many uncertainties inherent in this analysis including, but not limited to, issues such as limitations in the available data, reliance on client data and outside data sources, the underlying volatility of loss and other random processes, uncertainties that characterize the application of professional judgment in estimates and assumptions, etc. Ultimate losses, liabilities and claims depend upon future contingent events, including but not limited to unanticipated changes in inflation, laws, and regulations. As a result of these uncertainties, the actual outcomes could vary significantly from inuRE’s estimates in either direction. inuRE makes no representation about and does not guarantee the outcome, results, success, or profitability of any insurance or reinsurance program or venture, whether or not the analyses or conclusions contained herein apply to such program or venture. inuRE does not recommend making decisions based solely on the information contained in this analysis. Rather, this analysis should be viewed as a supplement to other information, including specific business practice, claims experience, and financial situation. Independent professional advisors should be consulted with respect to the issues and conclusions presented herein and their possible application. inuRE makes no representation or warranty as to the accuracy or completeness of this document and its contents. This analysis is not intended to be a complete actuarial communication, and as such is not intended to be relied upon. inuRE does not provide legal, accounting, or tax advice. This analysis does not constitute, is not intended to provide, and should not be construed as such advice. Qualified advisers should be consulted in these areas. inuRE makes no representation, does not guarantee and assumes no liability for the accuracy or completeness of, or any results obtained by application of, this analysis and conclusions provided herein. Where data is supplied by way of CD or other electronic format, inuRE accepts no liability for any loss or damage caused to the Recipient directly or indirectly through use of any such CD or other electronic format, even where caused by negligence. Without limitation, inuRE shall not be liable for: loss or corruption of data, damage to any computer or communications system, indirect or consequential losses. The Recipient should take proper precautions to prevent loss or damage – including the use of a virus checker. This limitation of liability does not apply to losses or damage caused by death, personal injury, dishonesty or any other liability which cannot be excluded by law. Acceptance of this document shall be deemed agreement to the above.