ASTIN Masterclass: Integrated Risk & Capital Management For General Insurers: From Risk Taking To Value Creation
Lecturers:
Guy Carpenter / Marsh Reinsurance and Capital, London, UK
Abstract:
We live in an increasingly dynamic and interconnected world where risk is constantly present in our daily activities and impacts the outputs we create.
Since ancient times, insurance has been a silent enabler of human progress. Used primarily to mitigate risks, insurance has helped make socio‑economic activities possible that would otherwise have been far too dangerous to undertake.
Today, the insurance industry stands at the crossroads of risk and opportunity. It exists to protect individuals and businesses from risks they face – while at the same time creating value for those who provide the capital that makes this protection possible.
But insurance is itself a risky business – more so than finance – primarily because its ‘production cost’ is uncertain, and also due to complexity of risks it assumes which are typically asymmetric, and heavy in the tail.
To succeed in this space, we must think across disciplines – combining actuarial science, finance, risk management, business & market intelligence, natural science and technology –to manage risk and capital holistically to be able to effectively steer an insurance business towards the efficient use of capital and enhanced firm value.
Yuriy and Richard have created this masterclass to share their experience of tackling real-world challenges in risk and capital management – and to show how analytical thinking and practical insight come together to solve them.
- They explore the fundamentals of value creation in insurance, with a particular focus on general insurance.
- They unpack the insurance value chain – who needs what, who delivers it, and who controls which parts of the insurance market – and they look at how market forces and dynamics drive the insurance cycle.
- They discuss how to effectively chart a risk-taking path – balancing the art and science of defining and maintaining risk appetite within an insurance firm.
By watching this masterclass, you will learn to think and act like a modern insurance leader – one who understands how risk, capital, and operations interact to shape business performance and resilience.
You will learn how to build and use risk intelligence – models, tools, processes, and procedures – to turn data and information into insight, and insight into sound, forward-looking decisions – even when information is limited.
You will explore integrated approaches to managing risk and capital dynamically as well as relevant models of firm value management – to quantify firm value, evaluate strategies, and support decisions that drive long-term success.
If you want to understand what integrated risk and capital management is, and how it can effectively be used to support value creation in insurance, then this masterclass is for you.
Yuriy and Richard combine solid theory, practical examples, and proven frameworks for anyone committed to building stronger, smarter insurance businesses.
Episodes:
- Introduction – why this masterclass and what’s in it
- Foundations of value creation in general insurance
- Charting the risk-taking path – the art and science of setting and maintaining Risk Appetite
- Risk Intelligence – foundations
- Risk Intelligence – some practical aspects
- Firm value management in general insurance – fundamentals
- Firm value management in general insurance – calculus of value creation
- Effective management of operations … conclusion and final matters
Total duration of masterclass presentation: 218 minutes
About the Lecturer: Yuriy has over twenty-five years of experience working in general insurance and has delivered a number of strategic risk and capital projects globally.
In his current role as a Managing Director at Guy Carpenter, Yuriy has specific responsibility for the Risk and Capital Advisory offerings. His main areas of focus cover a wide range of global strategic advisory services, including internal capital model development and model use in supporting strategic capital optimisation.
Prior to joining Guy Carpenter, Yuriy was a Senior Manager at PwC’s Actuarial Services in London, UK, providing consulting services to the Lloyd's market and the London company market in Enterprise Risk Management. This included risk and capital modelling, model validation, advanced risk analytics and reporting, and capital model use. During his time at PwC, he acted as a Head of Risk & Capital Modelling on a number of secondments to PwC’s top-tier insurance clients in the UK, Germany, France, and Switzerland. He was also involved in derivative pricing model validation and CCAR test submission, as well as balance sheet optimisation assignments for PwC’s top-tier investment banking clients.
Prior to PwC, Yuriy worked in Australia at Insurance Australia Group (IAG) as a DFA and Capital Modelling Manager responsible for providing strategic advisory services to the C-suite of the Group. He also worked at Hollard Insurance Australia, where he led the actuarial function.
Yuriy holds a PhD in mathematics from the National University of Kyiv, Ukraine, and a PhD in actuarial science and risk management from the University of New South Wales, Australian Graduate School of Management / School of Risk & Actuarial, Sydney. He is also active within the global actuarial profession and is currently serving as a volunteer on the ASTIN Board, the Non-Life Insurance Risk Section of the International Actuarial Association (IAA), where he runs the ASTIN Masterclasses initiative. Yuriy has contributed to a number of global R&D projects on risk and capital management and has published industry-led research papers. In 2018, Yuriy shared the prestigious Bob Alting von Geusau Prize awarded by the IAA for the best ERM paper.
About the Lecturer: Richard joined Guy Carpenter in June 2019 as Head of Advisory and Analytics. The role covers analytics for reinsurance structuring and placement as well as specific client advisory projects. Advisory projects cover a multitude of activities from rating advisory, to the impact of IFRS17, to assisting clients in respect of all aspects of their ERM and regulatory framework from the detailed modelling to training and governance.
Prior to joining Guy Carpenter Richard was the Chief Actuary at Lloyd’s responsible for the Lloyd’s central reserving and capital activities and regulatory compliance as well as the monitoring and regulating of each syndicate’s reserving and capital process, models, returns and results. The role also encompassed the authorisation of syndicate business plans, review of syndicate rating models by class of business, exposure management, risk management and reinsurance.
Prior to joining Lloyd’s Richard was the Global Product Leader for P&C Capital Modelling at TowersWatson. This involved the delivery, development and industrialisation of P&C financial risk solutions for global and single entity (re) insurers. The role covered all aspects of implementation and use, from data identification right through to the use of economic and statutory models in reporting and monitoring of results for the Executive Team and regulators.
Prior to being at TowersWatson Richard was a Partner at EMB Consultancy where he was responsible for client projects involving reserving, reinsurance optimisation, large case pricing and financial risk modelling and governance involving the development, implementation, validation and use of economic capital models.