About the review
We reviewed the following areas to understand how insurers are assessing insurers' exposure to catastrophe risks:
- their governance arrangements for assessing their exposure to catastrophe risk
- their processes to assess catastrophe risk
- their modelling of catastrophe risk
- their controls to limit their exposure
- any mitigation actions they take to reduce the effects of catastrophes.
What the review found
The review improved our understanding of how insurers have been prudently managing their catastrophe exposures and allowed us to monitor changes since the 2016 review.
The results from our review indicated that there were areas of weakness in 11 of the 28 insurers surveyed.
The other 17 insurers that we surveyed appeared 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 provided targeted feedback to all 28 insurers surveyed and also helped them improve how they assess catastrophe risk exposure where necessary.