Operational Risk Management - Understanding Your Risk LandscapeEneni Oduwole
This presentation provides insights on how the proper implementation of Operational Risk Management can lead to effective risk profiling, analysis and mitigation. It introduces operational risk as a bedrock for meaningful risk management irrespective of which industry an organization plays in.
Operational Risk Management - Understanding Your Risk LandscapeEneni Oduwole
This presentation provides insights on how the proper implementation of Operational Risk Management can lead to effective risk profiling, analysis and mitigation. It introduces operational risk as a bedrock for meaningful risk management irrespective of which industry an organization plays in.
Operational Risk Management Under Basel II & Basel IIIEneni Oduwole
In this introductory presentation on the subject, salient features that changed in approaches adopted for Operational Risk Management under Basel I and Basel I were highlighted.
Introduction to Operational Risk Management for Bank Junior Officers in Indiamlvenkat
This is an introductory, self-explanatory presentation on Operational Risk Management for Junior officers in Banks in India, illustrated with lots of interesting images to make the concepts easy to understand. Follow the link at the end of the slides to read interesting Op Risk stories compiled from day to day banking, which can be used for group exercise or better personal understanding. (Answers are not given! You have to generate them yourselves or from team members ! ).
(The story on Corporate Banking may appear similar to the recent Banking scam -Feb 2018- in India, but then, similar frauds have been repeatedly happening in one Bank or the other in the last 30 years in India. Neither Commercial Banks in India nor Reserve Bank of India have learnt the operational risk lessons).
You are free to use the slides and my stories for your work.
You can customise the stories to suit your banking environment and/or to add your own Bank stories to build up a library of Op Risk events.
I acknowledge and thank Internet and all original creators for providing cartoons, illustrations, photos, jokes and information which I have liberally used in the PPT.
Risk management is an integral part of business management. This set of principles was developed by the industry for the industry. They have been drafted to make them so practical that they will resonate with any financial organization.
Operational risk management and measurementRahmat Mulyana
a short description in mixed English and Bahasa Indonesia on Operational Risk Management and Measurement, in particular value at risk calculation using Monte carlo Simulation. Another method using EVT (Extree Value Theory) will be delivered shortly. regards
Operational Risk Management under BASEL eraTreat Risk
Operational risk have always ignored by Banks as they thought Credit and market risks can cause catastrophe. But history of misfortunes taught us different lessons. Controls and internal audit have long been construed as guard till BASEL II dictates forced banks to look with insight. Understand the dimension of ORM in this presentation.
Although Chinese banks have in the past not focused tremendously on risk management, recent events and comments from regulators indicate that risk management will be more of a focus for banks. In the first of our series of webinars on risk management in China, we look at operational risk management in Chinese banks to understand more about what it is, how things are different in China and what will happen in the near future.
This webinar will give you an in-depth look at the opportunities and challenges for banks as well as the potential implications for vendors and vendor solution offerings.
This file contains info related to my presentation on ERM implementation in the context of financial & regulatory convergence - requirements from SOX, Basel 2, COSO, and IAS/IFRS
Danske Bank — Version and strategy
The Risk function in Personal Banking
Building an Oprisk framework
How do you influence the risk culture
Improving risk culture through 1:1 risk attention
Improving risk culture through measurement
Improving risk culture — Empowerment & consequences
The 2nd seminar of Friends4Growth in Ho Chi Minh city with Prof. Enoch Ch'ng from SMU - Singapore Management University.
Friends4Growth
Together We Grow
--------------------------------------------------
Friends4Growth is a group of young professionals, who share a common passion to learn and grow more in their career through formal and informal educational opportunities. The group was founded by Vietnamese national Le Tran, a Wharton MBA Class of 2009.
The Friends4Growth mission is as follows:
- Be a place for young professionals to exchange and enhance knowledge
- Bring educational opportunities to members by providing access to well-known professors, business leaders and industry experts
- Provide information of universities around the world to members with intention to study abroad
- Share experience in studying, job search, working and living outside Vietnam
To achieve its mission, the group organizes various activities on a monthly basis to its members, such as:
- Seminars on various industry topics, with a sponsorship of the Singapore Management University.
- Coffee chats with experienced professionals from more developed economies
- Q&A sessions covering overseas life and work from seasoned experts
Website: www.friends4growth.com
Join us at: http://facebook.com/friends4growth and http://vn.linkedin.com/in/friends4growth
If you have any inquiry, please contact us at info@friends4growth.com
Operational Risk Management Under Basel II & Basel IIIEneni Oduwole
In this introductory presentation on the subject, salient features that changed in approaches adopted for Operational Risk Management under Basel I and Basel I were highlighted.
Introduction to Operational Risk Management for Bank Junior Officers in Indiamlvenkat
This is an introductory, self-explanatory presentation on Operational Risk Management for Junior officers in Banks in India, illustrated with lots of interesting images to make the concepts easy to understand. Follow the link at the end of the slides to read interesting Op Risk stories compiled from day to day banking, which can be used for group exercise or better personal understanding. (Answers are not given! You have to generate them yourselves or from team members ! ).
(The story on Corporate Banking may appear similar to the recent Banking scam -Feb 2018- in India, but then, similar frauds have been repeatedly happening in one Bank or the other in the last 30 years in India. Neither Commercial Banks in India nor Reserve Bank of India have learnt the operational risk lessons).
You are free to use the slides and my stories for your work.
You can customise the stories to suit your banking environment and/or to add your own Bank stories to build up a library of Op Risk events.
I acknowledge and thank Internet and all original creators for providing cartoons, illustrations, photos, jokes and information which I have liberally used in the PPT.
Risk management is an integral part of business management. This set of principles was developed by the industry for the industry. They have been drafted to make them so practical that they will resonate with any financial organization.
Operational risk management and measurementRahmat Mulyana
a short description in mixed English and Bahasa Indonesia on Operational Risk Management and Measurement, in particular value at risk calculation using Monte carlo Simulation. Another method using EVT (Extree Value Theory) will be delivered shortly. regards
Operational Risk Management under BASEL eraTreat Risk
Operational risk have always ignored by Banks as they thought Credit and market risks can cause catastrophe. But history of misfortunes taught us different lessons. Controls and internal audit have long been construed as guard till BASEL II dictates forced banks to look with insight. Understand the dimension of ORM in this presentation.
Although Chinese banks have in the past not focused tremendously on risk management, recent events and comments from regulators indicate that risk management will be more of a focus for banks. In the first of our series of webinars on risk management in China, we look at operational risk management in Chinese banks to understand more about what it is, how things are different in China and what will happen in the near future.
This webinar will give you an in-depth look at the opportunities and challenges for banks as well as the potential implications for vendors and vendor solution offerings.
This file contains info related to my presentation on ERM implementation in the context of financial & regulatory convergence - requirements from SOX, Basel 2, COSO, and IAS/IFRS
Danske Bank — Version and strategy
The Risk function in Personal Banking
Building an Oprisk framework
How do you influence the risk culture
Improving risk culture through 1:1 risk attention
Improving risk culture through measurement
Improving risk culture — Empowerment & consequences
The 2nd seminar of Friends4Growth in Ho Chi Minh city with Prof. Enoch Ch'ng from SMU - Singapore Management University.
Friends4Growth
Together We Grow
--------------------------------------------------
Friends4Growth is a group of young professionals, who share a common passion to learn and grow more in their career through formal and informal educational opportunities. The group was founded by Vietnamese national Le Tran, a Wharton MBA Class of 2009.
The Friends4Growth mission is as follows:
- Be a place for young professionals to exchange and enhance knowledge
- Bring educational opportunities to members by providing access to well-known professors, business leaders and industry experts
- Provide information of universities around the world to members with intention to study abroad
- Share experience in studying, job search, working and living outside Vietnam
To achieve its mission, the group organizes various activities on a monthly basis to its members, such as:
- Seminars on various industry topics, with a sponsorship of the Singapore Management University.
- Coffee chats with experienced professionals from more developed economies
- Q&A sessions covering overseas life and work from seasoned experts
Website: www.friends4growth.com
Join us at: http://facebook.com/friends4growth and http://vn.linkedin.com/in/friends4growth
If you have any inquiry, please contact us at info@friends4growth.com
Most car buyers want to drive out of lots without being ripped off by the dealership. We are here to teach you some techniques when it comes to car buying. From bargaining for a better price, visit more than one dealership to compare prices, and how financing with your own bank can save you money. By following our techniques, there is no reason you won’t be able to walk out of the dealership with their ad listed price.
Please visit us at :
http://defensivedrivingmckinney.com/healthy-driving-habits-will-improve-quality-of-driving-experience
Het Vlaamse bedrijf DSM Keukens NV heeft de resultaten van het laatste boekjaar gepubliceerd. Dat boekjaar loopt tot 30/6/15.
Het was een goed jaar: de brutomarge steeg van 3,8 naar 4,6 miljoen euro. In het laatste boekjaar werd een nettowinst van 1,6 miljoen euro opgetekend. Ook dat was beduidend beter dan het jaar daarvoor.
The Bermuda EBS Technical Provisions PowerPoint presentation given by consulting actuary Chandu C. Patel, FCAS, MAAA at last week's CAMAR meeting is now available for viewing.
Understanding Risk Management Basics for Business Owners (Series: Insurance f...Financial Poise
This expert panel embarks upon a discussion of key elements of risk management such as the 5-Steps of the Risk Management Process, Understanding 3 Main Types of Loss Exposures, Measuring Loss Exposures, and 5 Types of Risk Control. We’ll discuss Insurance Distribution, Wholesale v. Retail Insurers and Policies to give a business owner an understanding of what to look for in a carrier, a broker and how underwriters operate. We’ll also review some general best practices for Safety and Loss Control applicable to many businesses. In light of current circumstances, we’ll discuss safety measures for employees working from home.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/understanding-risk-management-basics-for-business-owners-2021/
Factors of Self-Funding: Evaluating the Pros and Consbenefitexpress
In a changing healthcare landscape, employers are increasingly considering taking the funding of their healthcare benefits into their own hands. If you're one of them, this webinar is the one-hour guide you must see.
Participants will learn:
- The legal implications associated with self-funding
- Common administrative pitfalls
- Solving employee issues involved in self-funded plans
- A full overview of laws and regulations governing self-funding
Our compliance expert will weigh in during a compact, one-hour guide.
An Introduction to Business Contingency Planning for the New Planner
You can download additional resources here: https://intrustcloud-my.sharepoint.com/personal/tim_rettig_intrust-it_com/_layouts/15/guestaccess.aspx?guestaccesstoken=H62iIK9BNH6l%2fLt%2bxDK4AXZhOHk%2fpu3rQ%2fl84I6ijd4%3d&docid=0c3b81a446d4c42f9bedff529b6b413c1
What to say and when to say it; the stakes don't get any higher than with public filings about cyber security risk and incidents. Learn what that SEC expects in the way of periodic filing disclosures, when you do and don't have to disclose a cyber incident, and how lawyers and security professionals can get on the same page so the right thing is disclosed at the right time.
Our featured speakers for this timely webinar will be:
-Rick Olin, CIPP/US; Counsel, GTC Law Group
-Gant Redmon, CIPP/US; General Counsel, Co3 Systems
Are you a CIPP holder? (CIPP/US, CIPP/C, CIPP/E, CIPP/G and CIPP/IT) Attend this webinar for CPE credit.
A presentation delivered at "Healthy Australian Agribusiness 2020+" in Adelaide on 23-8-18, for a group of 100 leaders of agribusiness, discussing common risks and insurance considerations from an insurance brokers vantage point.
Avoiding the Minefields of Claims-Made Insurance PoliciesL. D. Simmons
Many liability insurance policies are now issued on claims-made policy forms. As a business owner, risk manager or insurance broker, it is important to understand the difference between occurrence-based and claims-made forms and the key insurance coverage issues that arise in connection with claims made insurance. This presentation addresses these important topics.
Claims Process Improvement And AutomationClaire Louis
Presentation to Casualty Actuarial Society November 2007: presents retrospective on claim process improvement; identifies current change drivers; examines future claims process trends
1. 1
CAS Emerging Issues Seminar
April 15, 2002
Reserving for Unusual Catastrophes
Dan Thomas, PricewaterhouseCoopers
Claire Louis, PricewaterhouseCoopers
3. 3
Individual Company Reserve Estimate Methodology
• Potential actuarial methods
• Methods used
• Underwriting methodology with assumptions
• Specific line of business considerations
4. 4
Individual Company Reserve Estimate Methodology
Potential Actuarial Methods
• CAT development factors
– Actual development history
– Problems applying to 9/11 losses
• Market share allocation
5. 5
Individual Company Reserve Estimate Methodology
Methods Used
• Insurers and reinsurers initially used exposure-based loss
estimation method
• Loss estimation generally directed by underwriting with
the assistance of claims and actuarial
• Companies did not anticipate a 9/11-type loss event
• Company exposure identification and management process
reflected this: Most companies did not have such a process
in place prior to 9/11.
6. 6
Individual Company Reserve Estimate Methodology
Underwriting Methodology with Assumptions
• Intelligence gathering
• Intelligence vetting
• Exposure investigation
• Exposure estimation
• Loss reporting and analysis
• Loss reserving
7. 7
Individual Company Reserve Estimate Methodology
Underwriting Methodology with Assumptions
• Intelligence gathering – identifying the exposure
– Market sources
– Underwriting records
– Knowledge of ceding company book of business,
underwriting practices and underlying insured
operations
– Predictive models
– Sufficiently iterative
8. 8
Individual Company Reserve Estimate Methodology
Underwriting Methodology with Assumptions
• Intelligence vetting – assessing the exposure information
– Source reliability
– System data integrity
– Human error
– Ceding company advices
9. 9
Individual Company Reserve Estimate Methodology
Underwriting Methodology with Assumptions
• Exposure identification
– Primary exposure areas
– Product lines
– Contract types
– Detailed contract or policy analysis
– Contract wordings
10. 10
Individual Company Reserve Estimate Methodology
Underwriting Methodology with Assumptions
• Exposure estimation
– Industry loss estimates
– Market share
– Large measure of uncertainty regarding extent of
exposure
– Reassess as new market information is received
11. 11
Individual Company Reserve Estimate Methodology
Underwriting Methodology with Assumptions
• Loss reporting and analysis
– Expert retention
– Industry steering committees
– Coordinating counsel
– Contract terms and conditions
– Discrepancies in insurer policy and reinsurance contract
terms and conditions
• Occurrence
• Terrorism risk exclusion (some non-U.S. reinsurers)
12. 12
Individual Company Reserve Estimate Methodology
Underwriting Methodology with Assumptions
• Loss reserving
– General philosophy
– Provisions for uncertainty: portfolio versus transaction-
based – IBNER (ACRs) v. bulk v. IBNR
– LAE
– Volatility of ceding company or insured loss estimates
– Intra-company consistency in reserving approach
13. 13
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Property coverages
– Business interruption
– Extra expense
14. 14
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Business Interruption
– Background
– Threshold requirements
• Loss arising from a covered peril
– Causation
– Lost profits
• Interruption of insured’s business operations
– “Necessary suspension of operations”: Sufficient
level of interruption
– Physical damage may not be required for coverage to
attach
15. 15
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Business Interruption
– Coverage issues
• Replacement structure different from original
structure
• Cost of rebuilding
• Period of restoration or recovery
– Time to restore versus time to improve
– Post-restoration period losses
– Projected profits during period of restoration
16. 16
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Business Interruption
Pre-9/11 Post-9/11
Airlines Poor; losses expected for
3Q and for entire 2001;
drop in business travel;
GDP decline and traffic
highly correlated; severe
economic hardship
Grim; 40-50% decline in
revenue for remainder of
the year and 15-20% drop
for first half of 2002.
Lodging Poor; 7-9% decline
through August 2001;
expect continued
volatility
Grim; 20-40% short-term
decline due to travel
restrictions, fear to travel,
worsening of the general
U.S. economy; rising fuel
costs
17. 17
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Business Interruption - Civil or military authority coverage
– Impairment of access to insured premises
– Physical loss or damage to property other than the
insured premises
– Caused by or results from covered peril
– Some policies eliminate physical damage requirement
– Some policies exclude civil or military authority
coverage
– Sub-limits
18. 18
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Business Interruption - Civil or military authority coverage
– Claims presented by airlines, airports, airport
concessions, entertainment-related organizations,
hotels, travel and tour companies, and transportation
authorities (NY/NJ Port Authority)
– Ingress-egress
19. 19
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Business Interruption - other coverages
– Contingent business interruption
20. 20
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Extra Expense
– Necessary expenses that exceed normal operating costs
to continue or minimize suspension of business
operations
• Incurred during period of restoration
• Physical loss or damage required
• Sub-limits
21. 21
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Extra Expense - Categories
– Expenses incurred when insured shifts operation to
other pre-existing locations
– Cost of renting temporary office space
– Terror prevention expenses; new WTC
– Advertising expenses: Cost of changing Web site, sales
literature, and marketing
– Clean-up costs
22. 22
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Workers’ Compensation
– Background / definitions
– Post-traumatic stress syndrome (PTSD)
• Delayed response to stressor event: At least one
month
– Occupational disease
23. 23
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Worker’s Compensation - PTSD
– Five days post-event: 44% of Americans reported
substantial stress (Rand Institute)
– Early October 2001: 25% of Americans reported being
worried or having difficulty sleeping (Pew Research
Center)
– Some project a 20% rate of PTSD in work force within
1,000 feet of WTC at time of attack
– Risks of PTSD rise with age and history of trauma,
decline with higher educational level and higher quality
social and economic supports
24. 24
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Worker’s Compensation - PTSD
– Statutes or case law for many states excludes
compensation for purely mental injury (mental-mental)
– In most states, less than 1% of total claims are purely
mental (Worker’s Compensation Research Institute)
– Many states require accompanying physical injury
(physical-mental)
– New York does not require physical injury
25. 25
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Worker’s Compensation - PTSD
– Other PTSD compensation standards:
• Unusual and extraordinary stress
• Sudden, unexpected, extraordinary event
• Proximity to event
• Work conditions caused the injury
– Employers offering psychological counseling
– Few PTSD claims reported to insurers to date
• Reporting lag not unexpected given nature of PTSD
(delayed response to stressor event)
26. 26
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Worker’s compensation – occupational disease
– Background / definitions
• NYS Worker’s Compensation Law
– 29 specific illnesses if contracted by persons
working with certain toxic substances, including
silicosis and other dust diseases, asbestosis,
anthrax, lead, mercury and radium poisoning
27. 27
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Worker’s compensation – occupational disease
– Exposure to asbestos and other airborne pollutants from
WTC recovery and clean-up
– Health complaints reported by 4,000 emergency
response personnel working on WTC clean-up
– Respiratory ailments, neurological problems, cancer
– One-year statute of limitations begins when employee
is disabled and begins to lose wages
– Potentially long latency period and reporting lag
28. 28
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Liability – potential coverages impacted
– General liability
• Airlines or airports for negligent security
• Building owners for negligent security and fire
protection systems
– Professional liability – architects and engineers
• Negligent building design
29. 29
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Liability
– Industry losses difficult to estimate
– Limitation of Silverstein and airline liability for
damages under federal Air Safety and System
Stabilization Act
– Probability of subrogation
– Victims’ Compensation Fund
– Single venue for all lawsuits
30. 30
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Disability
– Employers required to provide under NYS law
– Provides income protection for non-employment-
related injuries or sicknesses
– Does not pay for cost of medical care
– Manhattan workers, visitors, general public
– Mental and nerve-related claims, including PTSD
– Lung ailments, cancers
– Latency period
31. 31
Individual Company Reserve Estimate Methodology
Specific Line of Business Considerations
• Health
– Non-work-related injuries
– Manhattan residents: Many children
– Manhattan visitors
– “WTC cough”, chronic sinus infections, acute lung
trauma
32. 32
Ongoing Issues
• Summary of paid / incurred to date
• Company reserve revisions
• Potential WTC reserving issues
• Future terrorism-related reserving issues
• 9/11 Insurance and non-insurance dispute update
• Reserving “checklist”
33. 33
Ongoing Issues
Summary of paid / incurred to date
• Types of payments
• Gross / net gap
Company reserve revisions
• Number of revisions
• Reasons for revisions
34. 34
Ongoing Issues
• Potential WTC reserving issues
– Property
• Business Interruption
– Worker’s compensation / disability / health
• PTSD
• Respiratory and neurological ailments; cancers
– Liability
• General, products
35. 35
Ongoing Issues
• Future terrorism-related reserving issues
– U.S. and global risks
– Chemical, biological, radiological attacks
• Could affect large numbers of people
• Potentially affected coverages
– Property / business interruption
– Worker’s compensation
– General liability, professional liability, products
liability
» Could give rise to mass tort and class actions
36. 36
Ongoing Issues
• Insurance response to terrorism exposures
– Shut-down from a bio-hoax
• Business interruption
– Anthrax clean-up
• Property
– Pollution or contamination exclusion
– Bio-attack in workplace
• Workers’ compensation
37. 37
Ongoing Issues
• Insurance response to terrorism exposures – Cont’d.
– Anthrax testing; cost of precautionary antibiotics
related to suspected anthrax exposure
• Worker’s compensation
– Protection of employees and customers against
potential terrorist attacks
• To date, lawsuits filed against U.S. Postal Service,
physician, and hospital
• General liability
– Pollution exclusion
38. 38
Ongoing Issues
• 9/11 Insurance Dispute Update
– Silverstein
• Total of 19 insurers, Swiss Re and others
• Policies did not reference Willis policy: Source of
dispute on number of occurrences
• 3rd September 2002 trial date
– Silverstein: ACE, XL
• Referenced Willis policy: one occurrence, not two
• Defines occurrence as “all losses or damages that
are attributable directly or indirectly to one cause or
to one series of similar causes”
• Settled based on one occurrence
39. 39
Ongoing Issues
• 9/11 Insurance Dispute Update – Cont’d.
– Westfield
• Lawsuit with Zurich dismissed
• Dispute will be decided through arbitration
• Zurich policy supplements Silverstein cover
– Port Authority
• No lawsuit; ongoing negotiations with insurers
• Primary issue is number of occurrences
40. 40
Ongoing Issues
• 9/11 Insurance Dispute Update – Cont’d.
– Reinsurers are challenging ceding company property &
business interruption claim payments, resulting in
delays in reinsurer payments
– Increase in reinsurer/ceding company disputes
• “Follow the fortunes” does not always mean “follow
the settlement”
41. 41
Ongoing Issues
• Non-Insurance Dispute-Related Issues
– 90-day deadline to give notice of claim; some notices
received after 90 days may be accepted
– One year deadline to file suit
– 1,300 people have given notice may sue NYC for $7.8
billion for fear of cancer and ailments related to WTC
cleanup and recovery
– Under NYS law, fire fighters not entitled to worker’s
compensation
42. 42
Ongoing Issues
• Non-Insurance Dispute-Related Issues – Cont’d.
– Property owners near WTC have also given notice they
may file suit against NYC
– As of 1/2002 (following expiration of 90-day deadline),
the Port Authority had received 87 notices of claim
– Suit filed on behalf of relatives of six airline passengers
who died on 9/11: American Airlines, United Airlines,
security firms at Logan, Newark, and Portland, ME,
airports
44. 44
Ongoing Issues
Checklist – Liability Estimation
• Statement of Opinion considerations
– Reinsurance Collectibility
– Applicability of financial reinsurance
– Impact on RBC or IRIS tests
– Type of opinion
– Changes in reserving methods and assumptions
– List of major risk factors
– Potential for material adverse deviation
– Materiality
45. 45
Ongoing Issues
Checklist – Liability Estimation
• Other considerations
– Booked reserve issues
– Personnel and methods used
– Uncollectible reinsurance
– Loss versus LAE
– Procedural changes in company
46. 46
Ongoing Issues
Checklist -- Solvency Considerations
• Cash flow
• Asset management
• Present to the outside world
• Reserve range uncertainty
47. 47
Ongoing Issues
Checklist -- Ongoing Business Considerations
• Reinsurance scenarios
• Policy and underwriting changes
• Changes in direction of company