Risk Modeling Lessons of the Financial Crisis

Contributor: Dom Tobey, Deputy Head Global Specialty Lines, PartnerRe
Date: 8/31/2009
When one considers the role that risk modeling played in the roots of the financial crisis, there were very clearly a number of common technical flaws in the models. However, the way the models were used and managed played a far more important role than the technical problems themselves. While these issues centered around investment banking activities, the broad lessons learned are equally applicable to insurance and reinsurance.
Tags: Non-specific, Risk management & reserving, Capital markets & structured products, Claims, Pricing & models