MATERIAL Y MÉTODOS
3. Material y métodos
3.1. Descripción de la zona de estudio
3.1.2. Situación geográfica
disclosure
link
Enterprise-
level risk
Risks associated with one or more losses from a portfolio of principal risks occurring and providing an aggregated impact on the organisation as a whole.Amlin is exposed to a domino-type event whereby, for example, a major natural catastrophe event not only affects Amlin’s insurance underwriting portfolio but also impacts stock markets, causing significant market and currency movements and a material impact to investments. The combined effect of these risk events could trigger reinsurance counterparty default events and hence a secondary impact on liquidity.
• No major change • Model output of combined simulated results shows stable picture at 31 December 2014
• The risk management framework ensures that potential risk exposures are considered individually and in aggregation
• Corporate Centre Risk produces an aggregated group risk profile providing an enterprise-wide view of risk exposures for the Group Executive and the Board
• Stress testing of a combination of material risks is conducted to determine impact on capital
• Reverse stress testing of the ultimate impact of combinations of material risks on business model viability and reputation is also performed
• The Internal Model produces 100,000 simulated results and combined scenarios which are then measured to ascertain the appropriate level of capital for Amlin
Chief Risk Officer
Effective risk management which optimises return for the risks we take
Strategic risk
Risks associated with theappropriateness of business strategy in the face of the external environment.
It is critically important that Amlin responds effectively to changes in the external environment which affect its business. The execution and integration of acquisitions can carry increased risk which requires sound management. • Changing dynamics in reinsurance markets leading to increased competition • Increased consolidation of capacity by major brokers
• Periodic review of key trends affecting Amlin’s markets is undertaken
• Emerging risks are considered and reviewed quarterly
• Clear guidelines and procedures exist for the execution and integration of acquisitions. All acquisitions undergo a risk assessment process
Chief Executive Effective risk management which optimises return for the risks we take Measured expansion of core businesses and geographic footprint
Underwriting –
Catastrophe risk
The risk of material claims arising from inherent uncertainties in the occurrence of insurance losses associated with natural or man-made catastrophic events.
Amlin has an extensive portfolio of property and marine insurance and reinsurance business that has significant exposure to weather and earthquake exposures as well as non-elemental perils such as industrial accidents.
• Catastrophe exposures have increased broadly in line with the growth in net assets during 2013
• Increased availability of outwards reinsurance at more attractive rates.
• There is a focus on underlying homogenous risk exposure which is more easily modelled
• Maintaining a geographic diversity of exposure
• Maintaining pricing discipline and close monitoring of pricing
• Setting and managing exposures within appropriate line size, aggregate exposure and probable maximum loss limits
• Purchase of outwards reinsurance programme
• Modelling and review of deterministic and stochastic loss scenarios
Group Chief Underwriting Officer
Effective risk management which optimises return for the risks we take Profit focused underwriting excellence
Underwriting –
Attritional risk
The risks of unexpected or unbudgeted increase in cost of small or large insurance claims.
Amlin is exposed to attritional losses caused by inadequate pricing and/or unexpected claims frequency as well as systemic change in the nature of claims.
• No major change
• Maintaining pricing discipline and close monitoring of pricing relative to required technical price
• Peer review of risks written
• Monitoring and review of incurred claims trends and performance
• Setting line size and underwriting authority limits
• Purchase of outwards reinsurance programme
Group Chief Underwriting Officer
Effective risk management which optimises return for the risks we take Profit focused underwriting excellence
Underwriting –
Reserving risk
The risk of unexpected or unbudgeted increase in claims emanating from business written where the result has been declared.
Amlin considers it has some exposure to claims reserving risk. However, due to the short-tail nature of many of its business lines, underwriting outcomes are determined relatively quickly after a loss is notified. All classes are subject to actuarial analysis using development patterns to establish appropriate reserving provisions.
• The margin held over the actuarial best estimate of required reserves remains stable at above £160 million (December 2012:
• Quarterly reserving process involving underwriters and actuaries
• Independent review of reserving process and proposed reserving levels by Group Reserving Actuary and Corporate Centre Risk function
• Periodic review of adequacy of case reserving
• Reserves set in excess of actuarial best estimate with the reserving margin as a percentage of carried reserves tracked as a key metric
Group Chief Underwriting Officer Group Finance & Operations Director
Effective risk management which optimises return for the risks we take
Principal risks and uncertainties
The principal risks and uncertainties facing the Group are a key focus of the
risk management framework and are tracked through review of the ORSA.
Principal risks
Risk factor description
Amlin’s analysis of impact levels
Risk trend and measure
Mitigation strategies for each underlying risk exposure are outlined below
Executive responsibility
Link to strategic priorities
Risk
disclosure
link
Enterprise-
level risk
Risks associated with one or more losses from a portfolio of principal risks occurring and providing an aggregated impact on the organisation as a whole.Amlin is exposed to a domino-type event whereby, for example, a major natural catastrophe event not only affects Amlin’s insurance underwriting portfolio but also impacts stock markets, causing significant market and currency movements and a material impact to investments. The combined effect of these risk events could trigger reinsurance counterparty default events and hence a secondary impact on liquidity.
• No major change • Model output of combined simulated results shows stable picture at 31 December 2014
• The risk management framework ensures that potential risk exposures are considered individually and in aggregation
• Corporate Centre Risk produces an aggregated group risk profile providing an enterprise-wide view of risk exposures for the Group Executive and the Board
• Stress testing of a combination of material risks is conducted to determine impact on capital
• Reverse stress testing of the ultimate impact of combinations of material risks on business model viability and reputation is also performed
• The Internal Model produces 100,000 simulated results and combined scenarios which are then measured to ascertain the appropriate level of capital for Amlin
Chief Risk Officer
Effective risk management which optimises return for the risks we take
Strategic risk
Risks associated with theappropriateness of business strategy in the face of the external environment.
It is critically important that Amlin responds effectively to changes in the external environment which affect its business. The execution and integration of acquisitions can carry increased risk which requires sound management. • Changing dynamics in reinsurance markets leading to increased competition • Increased consolidation of capacity by major brokers
• Periodic review of key trends affecting Amlin’s markets is undertaken
• Emerging risks are considered and reviewed quarterly
• Clear guidelines and procedures exist for the execution and integration of acquisitions. All acquisitions undergo a risk assessment process
Chief Executive Effective risk management which optimises return for the risks we take Measured expansion of core businesses and geographic footprint
Underwriting –
Catastrophe risk
The risk of material claims arising from inherent uncertainties in the occurrence of insurance losses associated with natural or man-made catastrophic events.
Amlin has an extensive portfolio of property and marine insurance and reinsurance business that has significant exposure to weather and earthquake exposures as well as non-elemental perils such as industrial accidents.
• Catastrophe exposures have increased broadly in line with the growth in net assets during 2013
• Increased availability of outwards reinsurance at more attractive rates.
• There is a focus on underlying homogenous risk exposure which is more easily modelled
• Maintaining a geographic diversity of exposure
• Maintaining pricing discipline and close monitoring of pricing
• Setting and managing exposures within appropriate line size, aggregate exposure and probable maximum loss limits
• Purchase of outwards reinsurance programme
• Modelling and review of deterministic and stochastic loss scenarios
Group Chief Underwriting Officer
Effective risk management which optimises return for the risks we take Profit focused underwriting excellence
Underwriting –
Attritional risk
The risks of unexpected or unbudgeted increase in cost of small or large insurance claims.
Amlin is exposed to attritional losses caused by inadequate pricing and/or unexpected claims frequency as well as systemic change in the nature of claims.
• No major change
• Maintaining pricing discipline and close monitoring of pricing relative to required technical price
• Peer review of risks written
• Monitoring and review of incurred claims trends and performance
• Setting line size and underwriting authority limits
• Purchase of outwards reinsurance programme
Group Chief Underwriting Officer
Effective risk management which optimises return for the risks we take Profit focused underwriting excellence
Underwriting –
Reserving risk
The risk of unexpected or unbudgeted increase in claims emanating from business written where the result has been declared.
Amlin considers it has some exposure to claims reserving risk. However, due to the short-tail nature of many of its business lines, underwriting outcomes are determined relatively quickly after a loss is notified. All classes are subject to actuarial analysis using development patterns to establish appropriate reserving provisions.
• The margin held over the actuarial best estimate of required reserves remains stable at above £160 million (December 2012: £160 million)
• Quarterly reserving process involving underwriters and actuaries
• Independent review of reserving process and proposed reserving levels by Group Reserving Actuary and Corporate Centre Risk function
• Periodic review of adequacy of case reserving
• Reserves set in excess of actuarial best estimate with the reserving margin as a percentage of carried reserves tracked as a key metric
Group Chief Underwriting Officer Group Finance & Operations Director
Effective risk management which optimises return for the risks we take
FINANCIAL S
TA