Michel M. Dacorogna (DEAR-Consulting) is scientific advisor to the chairman of SCOR. He conducts research in the field of insurance mathematics, capital management and risks.
In this presentation we review changes in the insurance industry due to new risk-based regulations such as Solvency 2 and SST and pressure of the shareholders. The move from corporate management based on cash-flow to risk-based management is described and discussed through its consequences on capital management, economic valuation and the internal model. We discuss the limits and difficulties of Enterprise Risk Management and its effect on the organisation of companies as well as we emphasize the changing role of actuaries in insurance. The risk/return relationship is becoming a central element of the company’s management, slowly supplanting the traditional accounting view.