The page provides an overview of our 2020 review of how licensed insurers assess their exposure to catastrophe risk. It is a follow up to our 2016 review.
The review has improved our understanding of how insurers are prudently managing their catastrophe exposures, and allowed us to monitor changes since the 2016 review.
The results from our review indicate there are areas of weakness in 11 of the 28 insurers surveyed.
The other 17 insurers that we surveyed appear to be assessing their catastrophe risks appropriately for their own particular circumstances. However, this does not prevent them from making further improvements to their assessment processes.
We intend to provide targeted feedback to all 28 insurers surveyed and also help them improve how they assess catastrophe risk exposure where necessary.
We reviewed the following areas to understand how insurers are assessing insurers' exposure to catastrophe risks:
We published a report from our previous review in 2016, in which we provided generalised feedback to the insurance industry.