Keywords
enterprise risk management; insurance industry; solvency-II; three pillar approach; insurance industry–value drivers; financial risk; operational risks; business risks; committee of sponsoring organizations of the treadway commission; enterprise risk management framework; capital requirement; supervisory review process; asset liability management; risk-based marketing; performance management; external rating
The paper is divided into the following sections:
The first talks about the types of risks that are present in the insurance business.
The second talks about the individual impact of each of these risks has on the insurance firm
Challenges faced by the insurance firms
On liabilty side
relaibility and availability of actuarial data is a challenge.
Pricing is unregulted while the contract is a long term contract.
On asset side
volatiltiy in credit and interest rate markets
Are there any unique risks faced by Indian insurance firms??
Therefore what are the risk minimization approaches that are adopted by Indian firms..adopted by foreign firms...?
what about the regulations in indian insurance insudustry..is it lighter than regulation abroad??
What can you suggest be done in the future to ward off a crisis in the insurance sector?
Risk management in Indian Insurance Sector-is it getting the importance it deserves?
For an insurance company risk is more intergrated in the business model than perhaps any other insustry. An insurance company is a warehouse of risk since its business model rests on the ability of the insurer to pool the risks and be able to price them adequately together various is to be paid for acquiring risk. Hence it is critical that th ...