RISK MANAGEMENT
Looking at the Insurance Industry Through a Market-Consistent Lens: Implementing Market Consistent Embedded Value.
The insurance industry is moving in the direction of market-consistent frameworks both in measuring value and in managing risk. Market Consistent Embedded Value (MCEV) will play an important role in the emergence of a new economic model for measuring and managing both risk and economic value. Page 1
INDUSTRY WATCH
• Treasury Bailout Expands to Insurers
• Bond Insurers Make Case for Rescue
• Pressure Grows for CDS Regulation
• Life Insurers Press for Federal Regulation
• Surpluses Decline, Insurers Confirm Capital Positions
• Fitch Revises Ratings Outlooks
• AIG Responds to Criticism, Starts the Restructuring Process
• RMS Revises Hurricane Ike Industry Loss Estimate
• Bank Holding Companies Increase Insurance Revenue
• NAIC Considers Forming Own Rating Agency
• SEC Reopens Comment Period on Proposed Annuities Rule
• M&A Update
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INVESTMENT MANAGEMENT
Flaws in Buy and Hold Strategy.
The industry needs to rethink the buy and hold adage and embrace the fact that it isn’t wise to be fully invested all the time. The alternate paradigm is: if something isn’t working, get out. Page 3
FINANCE FUNCTION
Finance Function Performance: Executives Use Industry Benchmarking to Raise the Bar.
Benchmarking can identify improvement opportunities and enable better, faster decisions – but only if you know how to use and interpret the data. Page 9
WHO’S WHERE?
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