We were able to provide our client a London market insurer specialising in business lines with assurance regarding the overall effectiveness of their RDS approach, and recommendations to help them address weaknesses and gaps 

The background

Our client is a London market insurer specialising in business lines characterised by large and infrequent losses. We provided an independent review of their realistic disaster scenario (RDS) process to assess its effectiveness.

Our solution

• We agreed clear questions to address in our review, including providing assurance that the RDS process reflected the key risks faced by the business, that it was suitably risk-responsive, and that sophistication of the methodology was proportionate to the level of risk.

• We reviewed the process documentation and the results from the most recent RDS process against the agreed assessment criteria.

• We supplemented this through a series of interviews with the exposure management / pricing team and the underwriters to gather their perspectives on the process and the key risks.

• We provided clear and concise feedback to our client on the strength of their process and actionable recommendations for further improvement.

The results

We were able to provide our client with assurance regarding the overall effectiveness of their RDS approach, and recommendations to help them address weaknesses and gaps.