EU regulation of greenhouse gas emissions: what solutions can insurance companies offer industry?
Restrictions on greenhouse gas (GHG) emissions imposed by European Regulations are being tightened. As of 2013 (beginning of Phase 3), GHG will generate both higher costs and new risks for the companies concerned. Risks of accident-related non-compliance (insufficient allowances) are already partly covered by conventional insurance. But appropriate wording has not been introduced in the policies to take this into account, leaving the way open to disputes. The risks associated with projects recognised by the Kyoto protocol (CDM/JI) which enable carbon offsets to be obtained, can be insured with the notable exception of regulatory risks. With major institutional changes on the horizon, insurers need to have a better grasp of ETS mechanisms and anticipate their repercussions on the transition to Phase 3.

From Principle Based Risk Management to Solvency Requirements

SCOR has traditionally been a strong proponent of advanced risk management methods and models in the insurance industry.

In the book “From Principle-based Risk Management to Solvency Requirements", SCOR specialists describe over five hundred pages how the company models risks according to the requirements of the Swiss Solvency Test (SST), which is based on concepts very similar to the ones set forth by Solvency II.

Beyond the regulatory requirements, the understanding of the concepts involved as well as the results of the comprehensive risk modelling process are essential in all sectors and are vital to the development of a coherent Enterprise Risk Management (ERM) process.

The understanding of the ERM process allows companies to optimally allocate the capital necessary for their business and to devise a comprehensive, successful and coherent risk strategy.

SCOR is happy and proud to share its state-of-the-art modelling approach with different communities: academic, regulators, actuaries, clients and other interested parties.

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