A Cost/Benefit Framework for Making Rational Insurance Risk Retention Decisions A cost-benefit framework for risk retention optimization, combined with a behaviorist approach that accounts for insurance underwriters' tendencies to "over-swing" provides a consistent framework for optimal decision-making. The speaker brings vast knowledge and experience to guide you through with the know-how of Cost/Benefit framework for making rational insurance retention decisions. Description Why Should You Attend: Due to several years of incurring normal losses, including several major catastrophes, major insurers are experiencing rapidly-increasing loss ratios. As opposed to years when investment income is able to more-than-offset underwriting losses, the trend toward higher loss ratios is not being offset by today's paltry investment returns. The result is that insurers are becoming increasingly selective, and pricing is beginning to escalate. By considering acceptance of higher deductibles, organizations may be able to mitigate pricing increases, or even reduce combined total expenditures for insurance and retained losses. Other organizations, which already retain deductibles near the maximum amount of their comfort level, will face a different set of options. A cost-benefit framework for risk retention optimization, combined with a behaviorist approach that accounts for insurance underwriters' tendencies to "over-swing" provides a consistent framework for optimal decision-making. This webinar will clarify the aforementioned and guide you through the right approach. At the end of this session, the speaker will handle your specific questions and address any challenges you have/had in making rational insurance risk reduction. Areas Covered in this Webinar: Unified Conceptual Framework that applies to all types of risk. Review shortcomings of the "textbook" five-step risk management process. Understanding Risk from a Financial Perspective. How to apply financial portfolio theory to insurance decisions. Review and interpretation of the recent Risk and Insurance Management Society's Executive Report, "Exploring Risk Appetite and Risk Tolerance" Risk Transfer Optimization.
Effect of Differing Risk Characteristics affecting Economics of Risk Transfer. Principal Risk Characteristics. Factoring-in insurance underwriting cycles and underwriter behavior: how to benefit from insurer "over-swing". How to achieve the best combination of risk reduction, risk retention, and risk transfer. Who Will Benefit: Financial Officers Chief Risk Officers Risk Managers Staff with roles and responsibilities in risk management Insurance professionals, with roles in underwriting or brokerage Instructor Profile: Allen Monroe, President, RiskINFO, Inc., has advised Fortune 500 clients for over 30 years, on riskfinance strategy and alternatives to traditional insurance. He has formed numerous captive insurers and self-insurance pooling arrangements, with assets totaling $1 billion. He developed an Enterprise Risk Management intranet for the World Bank, and has been nominated for a Smithsonian Award for his early work in developing internet-based disaster management systems. Mr. Monroe has coordinated risk management studies for Marsh, Inc., serving as a Vice President, and served as President of Reed Risk Management, a subsidiary of Reed Stenhouse Companies. His other career experiences include internal audit at Kraftco and Trust Investment Analysis for a major midwestern bank. Mr. Monroe has been a frequent speaker before industry conferences, and has published extensively on subjects involving Risk Finance, Risk Management Technology, and Strategic Risk Management. He is a graduate of the Wharton School, majoring in Finance.