Welcome to this special ‘risk’ edition of The Actuary. For many of us, the first thing we think of when we see the word ‘risk’ is risk-based capital.
Two years on from onset of the pandemic, Rosalind Roussouw follows up on the capital management actions UK insurers took in 2020, and shares how approaches have evolved according to companies’ latest SFCRs (p24).
In this month’s interview (p14), Yiannis Parizas and I speak to Hisham Ramadan, assistant chairman of Egypt’s Financial Regulatory Authority. We hear about the transformation of the Egyptian insurance industry during the past three decades, and the way in which the regulator has sought and continues to seek to update its risk management toolkit.
Recent months have reminded us of the many risks that surround us. Rajeshwarie VS takes stock of geopolitical risk – in particular, what the Russia-Ukraine war has meant for property and casualty insurers (p26). Adél Drew draws lessons from historical operational failures on how organisations can build resilience (p17).
In the cover article (p20), by analogy to the study of systems in physics, Lawrence Habahbeh proposes a framework to study risks as systems. In particular, he says, this can formalise thinking around emerging risks, where traditional approaches such as simple likelihood/severity matrices will be inadequate.
I hope you enjoy this issue.
Ruolin Wang Editor [email protected]
Ruolin Wang is a Solutions Manager at Schroders. Any views are her own and not those of Schroders.