Answer to Question #61867 in Finance for Doltsee

Question

how insurers manage their risks in ways other than re-insurance.

Answer 1

Because they actively seek and retain risk, insurers have always emphasized effective risk and capital management. As ERM matures, several professional bodies and industry groups are publishing their views on ERM best practices and recommending new courses of action for insurers.
However, while regulatory intervention is often the driver of change, some of the most successful ERM cultures have developed in response to internal events or errors, such as volatile earnings, over-reliance on models, poor value decisions and so on in order to improve risk culture, governance and quantification.