Insurer catastrophe risk survey 2020
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.
Outcome of our 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.
Areas we reviewed
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.
Insurer catastrophe risk survey 2016
We published a report from our previous review in 2016, in which we provided generalised feedback to the insurance industry.