Risk Management 风险管理.pdf

1/23/2012 RMI 3350 Topic 01 Insurer as Financial Institution Spring 2012 Why Risk Manager? • “First he sat in the back seat and then he had his foot on the brake, now he has got one hand on the steering wheel! Is there no end to the risk manager’s advancement into every aspect of risk-taking in a financial firm? Next, he’ll be right there in the driving seat…” (Euromoney, February 1998) RMI 3350 Risk Seminar 2 1 1/23/2012 Insurer is Financial Institution • Product – promise • Reasons insurance industry exists –efficient use of expertise –wide spreading of risk –Ability to charge premiums in advance and pay compensation afterwards RMI 3350 Risk Seminar 3 Business economics of Insurers • Consider an automaker: the financing of assets (liability) are largely detached from productions and sales • An insurer: more sales automatically increase liability, and risk. Implications: –Premium setting must be prudent –Investment must produce reliable return –Equity capital serves as the buffer RMI 3350 Risk Seminar 4 2 1/23/2012 Risk for Insurer • Underwriting risk – Life risk – Property-casualty risk • Financial risk – Market risk