+1 (845) 317-8489 [email protected]

This is an example of where a ’roundtable’ approach to risk management is required. The


risks associated with the new strategy will be relevant to a number of departments and will


address (at the minimum) the following risk-related questions:


• Underwriting – do we have historical data on losses upon which we can base the


premiums? Are we familiar with the policy wordings that are used in the pet insurance


market? Do we have a claims handling capability?


• HR – do we have the right staff with pet insurance experience? Should we develop and


roll out a training programme for all staff involved in the project?


• Strategy team – will the projected financial performance of this business sit within our


stated risk appetite and tolerances?


• Marketing – what is the level of competition; who are the main players and is there


capacity for a new insurer?


• IT – do we have the capabilities and experience to set up and manage an internet-based


sales and customer management system?


• Compliance – are we able to provide the product and service levels that will provide fair


treatment for policyholders?


• Finance – have we calculated the additional solvency capital required to support this


business? How will this initiative affect our Solvency II internal model? Have we created a


budget for the set-up and operation of the new product?