Top Insurance Industry Issues in 2013: Contingent business interruption (CBI) and principles based reserving (PBR)
This publication includes the first two sections of the 2013 edition of Top Issues, which PwC will release in its entirety in March.
- Contingent business interruption (CBI) modeling and risk assessment - In the wake of recent natural disasters, modeling for CBI has become a business imperative. While adequately quantifying CBI risk dynamics has always been a challenge, there are new approaches to modeling and risk assessment that hold considerable promise.
- Principles based reserving (PBR) - PBR for life products will require many insurers to take a fresh look at their systems, processes, data and governance for both pricing and valuation. In addition, their statutory earnings or profit signature likely will change, introducing the potential for increased volatility year over year.