Monte Carlo

In the wake of the global financial crisis, insurance companies that do not employ enterprise risk management as their standard operating procedure are at a severe competitive disadvantage, Marsh & McLennan’s president and chief executive officer, Brian Duperreault, warned here.

Traditional measures of risk and capital allocation are insufficient to identify and manage systemic risks in this complex economy, so insurers and reinsurers need to “examine how each risk assumed affects their overall ability to achieve financial targets,” Mr. Duperreault said here at a session sponsored by PricewaterhouseCoopers during the annual Rendez-Vous de Septembre.

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