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Industry Insights:
A new approach to risk
The role of capital management and enterprise risk management in the insurance industry.
by Chris Suchar and Dilip Krishna
Insurance is a business of risks, and the proper management of an insurance company’s capital is critical to its long-term survival and profitability. Unlike other industries, insurers regularly sell products where the maximum possible loss is multiples of their financial resources—they literally bet the company on claims that could exceed the premiums collected.
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