September 9, 2010 by Canadian Underwriter
Reinsurers and groups with reinsurance as a key component tend to have more advanced enterprise risk management (ERM) capabilities than purely primary insurers, reports Standard & Poor’s (S&P’s).
In its report, Global Reinsurers Lead the Way in Enterprise Risk Management, S&P’s notes that among the insurance companies it rates around the world, reinsurers dominate its “excellent” and “strong” ERM assessments.
“In our view, many reinsurers have adhered to prudent investment policies, and there were only moderate rate declines in the 2010 renewal season,” an S&P’s release says.
“We believe this reflects, to some extent, the impact of advanced ERM frameworks, which, in our view, have heightened risk awareness, owing to better risk measuring techniques and risk-selection practices among global reinsurers.”
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