Guy Carpenter Publishes Definitive Guide to Enterprise Risk Analysis for Property & Liability Insurance Companies

NEW YORK - Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and part of the Marsh & McLennan Companies (NYSE: MMC), has published Enterprise Risk Analysis for Property & Liability Insurance Companies, a comprehensive, practical enterprise risk management (ERM) guide. The book equips insurance executives, risk managers, actuaries, academics and others with the latest strategies and applications in ERM, from the field’s leading specialists and practitioners.

“With rating agencies, regulators, parent companies and even investors beginning to require that insurers institute stricter ERM best practices, executives are being pressured to understand and manage risk as never before,” said Don Mango, Managing Director at Guy Carpenter. “Because insurers also assume their clients’ risks, assessing and managing their enterprise-wide risk has become much more complex and challenging. This book provides a single, essential reference on this increasingly important and rapidly evolving topic.”

Building on Guy Carpenter’s strength in insurance hazard modeling for risk management, Enterprise Risk Analysis brings together perspectives from a leading group of the firm’s ERM experts, including Paul Brehm, Spencer Gluck, Rodney Kreps, John A. Major, Don Mango, Richard Shaw, Gary Venter, Steve White, and Susan Witcraft. In addition to addressing ERM theory, the book focuses on hands-on, practical implementation issues, including models and management frameworks, insurance hazard risks, financial risk models, operational risk and strategic risk.

The book covers both traditional ERM topics like loss distribution modeling and loss reserve models and emerging solutions such as timeline simulation, new copulas for the identification of dependence between variables, linking risk management and capital optimization, frameworks for modeling the insurance pricing cycle, models for reinsurance receivables risk and a wide selection of risk measures.

“Although ERM is increasingly being recognized by insurance executives as a good idea, implementation is a complex task. This text is a must-read for those who want to better understand and apply practical ERM principles to their organizations,” added Mr. Mango. “By providing insight on ERM, based on years of research, this book can help companies better and more systematically address this critical issue and add value to their organizations.”