Given the current economic climate, the financial markets may well be considering whether other insurers are at risk. While the only certainty in today’s market is uncertainty, research suggests that AIG was a one-of-a-kind event within the insurance sector.

Continue reading “AIG’s risk, the industry’s reward?” »

The insurance industry, perhaps more than any other sector, is focused on understanding and mitigating global warming, and for good reason: a changing environment could amplify risks, resulting in lower underwriting profits. Yet despite their heightened interest in climate change, few insurers are wholly committed to building a green IT environment.

The operational success of property and casualty insurers (non-life or general insurers) is correlated to the weather. Foreseeing these risks, insurers have enacted premium increases in catastrophe-prone regions, while others have simply stopped writing policies in these markets. However, both of these approaches are insufficient: regulators have tempered rate increases, and while exiting the market may protect against future losses, it diminishes an insurer’s ability to cross-sell other, safer products. Continue reading “Insurers’ IT strategies are not ‘green’– and that’s okay” »