Parametric Insurance - A Powerful Solution for Risk Management"

This webinar explores the evolving cyber threat landscape, and the steps organizations can take to build resilience.

Drawing on insights from simulated sophisticated cyberattacks, we will share key lessons learned, highlight the most common pitfalls that leave businesses vulnerable, and provide actionable recommendations to reduce risk.

Framed in the context of current and emerging threats including ransomware, AI-driven attacks, and supply-chain vulnerabilities, this session aims to equip decision-makers with clear strategies to strengthen defenses, improve response readiness, and ensure business continuity in the face of an increasingly hostile digital environment.

The additive reserving model assumes the existence of volume measures such that the corresponding expected loss ratios are identical for all accident years. While classical literature assumes these volumes are known, in practice, accurate volume measures are often unavailable. The issue of uncertain volume measures in the additive model was addressed in a generalization of the loss ratio method published in 2018. The derivation is rather complex and the method computationally intensive, especially for large loss development triangles.
We present an alternative approach that leverages the well-established EM algorithm, significantly reducing computational requirements.


Speaker: Ulrich Riegel
Session moderator: Brian Fannin

This talk presents a method for constructing insurable risk portfolios using a data-driven approach to devise risk retention programs that safeguard firms from a multitude of risks. Because firms face many risks, including fire damage to their buildings, liability from management misconduct, and external threats like cyber attacks, this talk treats these potential liabilities as a "portfolio." Drawing inspiration from Markowitz portfolio theory, it leverages techniques from probability, statistics, and optimization to build algorithms that construct optimal risk insurable portfolios under budget constraints. Through engaging case studies, viewers will learn how to build optimal insurable risk portfolios.
The talk illustrates a frontier that depicts the trade-off between the uncertainty of a portfolio and the cost of risk transfer. This visual representation, mirroring familiar Markowitz investment tools, enables informed decision-making and easy adoption by risk advisors. The talk outlines the mathematical groundwork for constructing optimal insurable risk portfolios in an effective and aesthetically pleasing manner.

Speaker: Edward (Jed) Frees
Moderator: Brian Fannin