Insurance & Reinsurance

Actor Type: Insurer Breaks When: Systemic loss Capital Intensity: Medium Cash Flow Stability: Stable Economic Nature: Risk transfer Margin Driver: Risk pricing Performs Best When: Post-crisis Pricing Power: Moderate Primary Function: Insure fabs, cargo Primary Risk Transfer Mechanism: Reinsurance Primary Risks Held: Correlated tail risk Public / Private Mix: Mostly public Representative Firms: FM Global; Lloyd’s Residual Risk After Transfer: Low Revenue Model: Premiums Typical Margin Profile: Low–medium Value Chain Segment: Risk services Who Ultimately Bears the Risk?: Policyholders / state