Groundbreaking reports launched on how to reduce effects of disasters in developing countries
The reports are co-funded by the Lloyd’s Tercentenary Research Foundation who funds risk related academic research
The new reports, Developing Scenarios for the Insurance Industry and Developing Scenarios for Disaster Risk Reduction offer valuable insight into provide best practice tools for catastrophic shock scenarios which trigger severe losses and adversely impact developing countries.
Both reports are today published by The Lighthill Risk Network Ltd (Lighthill) and produced in partnership with the Cambridge Centre for Risk Studies and co-funded by the Lloyd’s Tercentenary Research Foundation.
The result of linking leading academics with senior insurance professionals, the reports provide a practice scenario planning tool for the insurance industry and governments, particularly of developing countries, when considering the outcomes of catastrophic shock risk scenarios.
Scenarios are increasingly being used by underwriters, analysts, risk managers, actuaries, and other stakeholders in the (re)insurance community to better understand and stress test the characteristics and consequences of unknown, uncertain, or unexpected future events.
What do the reports address?
Developing Scenarios for the Insurance Industry addresses scenario best practices in the insurance industry, with the case study example of a Cyber Blackout event, exploring the interlinked nature of such events and its global financial ramifications.
Developing Scenarios for Disaster Risk Reduction addresses the ever more complex and interconnected disaster risk landscape, with the potential for disasters - including natural catastrophes - to cascade through global systems increasing, with disproportionately negative impacts on developing countries.
Both reports benefited from the input of leading insurance experts from Lighthill, whose members include senior representatives from Guy Carpenter, Liberty Mutual, Aon, Hiscox, Lloyd’s, and MS Amlin.
Lloyd’s Tercentenary Research Foundation Chair and Global chair of Aon's Reinsurance Solutions business Dominic Christian said:
“From climate change, which disproportionately impacts developing countries, to the rapidly evolving field of cyber risk - the potential for disasters to cascade through systems is increasing.
It is critical that the insurance sector as well as governments and disaster risk management agencies have a common framework for best practice when considering and planning for potential catastrophic shock scenarios.
Reducing disaster risk requires powerful and concerted cross-sector effort if we are to develop strategies to better understand and manage risk, and ultimately improve resilience.”
About Lighthill Risk Network
The Lighthill Risk Network is an all-encompassing and inclusive organisation with the specific aim of facilitating and enhancing knowledge transfer into business from academic, government and commercial experts at the forefront of risk-related research. https://lighthillrisknetwork.org/
About the Cambridge Centre for Risk Studies
The Cambridge Centre for Risk Studies at the University of Cambridge Judge Business School provides frameworks for recognising, assessing and managing the impacts of systemic threats. To test our research outputs and guide our research agenda, the Centre engages with the business community, government policy makers, regulators and industry bodies. www.jbs.cam.ac.uk/risk