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Framework for optimal decision-making for risk retention optimization

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					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 risk-
finance 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 mid-
western 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.

				
DOCUMENT INFO
Description: Cost/Benefit framework for making rational insurance brings vast knowledge. Insurers are becoming increasingly selective and pricing is to escalate, so it is combined with a approach for insurance tendencies to "over-swing" provides a consistent framework for optimal decision-making.