For a rapidly growing reinsurer such as Peak Re an effective and robust risk management framework is of utmost importance and a prerequisite to the sustainable and sound development of the franchise.
The continued diversification of Peak Re’s business portfolio both by line of business and geography requires a state-of-the-art risk management approach which not only identifies, manages and controls risk but also informs strategic decisions such as pricing and capital allocation.
Peak Re’s risk management approach is based on the Company’s risk map and its three key components: asset risk, liability risk and business risk as well as the respective sub-categories of credit, market, underwriting, reserving, operational and strategic risk. These risks are managed holistically, i.e. based on a balance sheet view, with equal attention to the assets and liabilities side.
Peak Re licenses vendor models to analyze its natural catastrophe exposures and based on the model, scenarios and defined risk baskets have been developed. In addition, Peak Re has built up a strong analytical team which enables management to evaluate risks according to its own assessments. The modern IT platform we use currently supports real time accumulation tracking tool covering property, agriculture, marine, personal accident, credit and life & health business.