The ability of insurance and reinsurance industries to manage a tail event has been called into question by experts. Unprecedented events with a low-frequency probability but extremely high loss potential Speaking with can cripple firms and economies, and while the likelihood of such an event is low, Risk Management Solutions CEO , Hemant Shah suggests insurance and reinsurance companies should be paying more attention to losses of this nature than they currently appear to be. In his article, “Insurance Companies Are Not Paying Enough Attention To Losses Of This Kind,” published in the Journal of Financial Economics, Shah, who also serves as president of risk management solutions at Aon, Inc.,
The ability of insurance and reinsurance industries to manage a tail event has been called into question by experts. Unprecedented events with a low-frequency probability but extremely high loss potential can cripple firms and economies, and while the likelihood of such an event is low, Risk Management Solutions CEO , Hemant Shah suggests insurance and reinsurance companies should be paying more attention to losses of this nature than they currently appear to be. In his article, “Insurance Companies Are Not Paying Enough Attention To Losses Of This Kind,” published in the Journal of Financial Economics, Shah, who also serves as president of risk management solutions at Aon, Inc.,