Proportionate Risk Assessment – The IAA Risk Tool in Action
Risk-based financial management and supervision approaches require individuals and organisations to identify their key risks before they can be managed or supervised. This session introduces a practical risk assessment process and associated tool, developed by the IAA's Inclusive Insurance (previously Microinsurance) Working Group. The process gives a framework that can assess risks and aggregate their cumulative or portfolio impact. Outcomes from the process provide input and insight to support supervisory decision making processes. The session will highlight how the process has been used by insurance supervisors in two very different applications. The first demonstrates how the framework and its associated tool has been used to transform a supervisor's product approval process. The second illustrates the breadth of application of the framework through a retrospective assessment of the risks that arose in a country's insurance industry due to privatising third party motor insurance.
Resource Materials: Assessing Risk and Proportionate Actuarial Services in Inclusive Insurance Markets — An Educational Paper and Toolkit / Tool / Health & Life Product / Mobile Hospital Cash Product / Social Health Product