Produced by the ABI, this guide will help the industry to better identify, assess and manage risks that may not be included in an insurer's current catastrophe modelling approach. Examples of these risks may include the threat of fires and tsunami following an earthquake, or looting in the aftermath of a major flood.
The guide outlines:
• A common definition of what may constitute a non-modelled risk.
• Effective governance of such risks within an organisation.
• Methods of identifying such risks. For example, assessing current and potential future exposures, analysing past claims, and using expert option and analysis.
• Methods of quantifying non-modelled risks.
• Modelling implications.