The Geneva Association
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The Geneva Association Annual Report 2010/2011 The Geneva Association (The International Association for the Study of Insurance Economics) The Geneva Association is the leading international insurance think tank for strategically important insurance and risk management issues. The Geneva Association identifies fundamental trends and strategic issues where insurance plays a substantial role or which influence the insurance sector. Through the development of research programmes, regular publications and the organisation of international meetings, The Geneva Association serves as a catalyst for progress in the understanding of risk and insurance matters and acts as an information creator and disseminator. It is the leading voice of the largest insurance groups worldwide in the dialogue with international institutions. In parallel, it advances—in economic and cultural terms—the development and application of risk management and the understanding of uncertainty in the modern economy. The Geneva Association membership comprises a statutory maximum of 90 Chief Executive Officers (CEOs) from the world’s top insurance and reinsurance companies. It organises international expert networks and manages discussion platforms for senior insurance executives and specialists as well as policy-makers, regulators and multilateral organisations. The Geneva Association’s annual General Assembly is the most prestigious gathering of leading insurance CEOs worldwide. Established in 1973, The Geneva Association, officially the “International Association for the Study of Insurance Economics”, is based in Geneva, Switzerland and is a non-profit organisation funded by its members. Chairman: Dr Nikolaus von Bomhard, Chairman of the Board of Management, Munich Re, Munich. Vice Chairmen: Mr John Strangfeld, Chairman and CEO, Prudential Financial, Inc., Newark; Mr Kunio Ishihara, Chairman of the Board, Tokio Marine & Nichido Fire Insurance Co., Tokyo; Mr Michael Diekmann, Chairman of the Management Board, Allianz SE, Munich. Members of the Board: Dr Carlo Acutis, Vice President, Vittoria Assicurazioni S.p.A., Turin; Dr Sergio Balbinot, Deputy CEO, Assicurazioni Generali S.p.A., Trieste; Mr Henri de Castries, Chairman of the Management Board and CEO, AXA Group, Paris; Mr Patrick de Larragoiti Lucas, President, Sul America Seguros, Rio de Janeiro; Mr Edmund Kelly, President and CEO, Liberty Mutual Insurance Co., Boston; Prof. Denis Kessler, Chairman and CEO, SCOR, Paris; Dr Stefan Lippe, CEO, Swiss Re Group, Zurich; Mr José Manuel Martínez, Chairman, MAPFRE SA, Madrid; Mr Andrew Moss, CEO, Aviva plc, London; Mr Martin Senn, CEO, Zurich Financial Services, Zurich; Mr Donald A. Stewart, CEO, Sun Life Financial Inc., Toronto; Mr Tidjane Thiam, Group Chief Executive, Prudential plc, London; Dr Richard Ward, CEO, Lloyd’s, London; Dr Yan Wu, Chairman and President, The People’s Insurance Company (Group) of China Ltd., Beijing. Secretary General and Managing Director: Mr Patrick M. Liedtke, Geneva. Vice Secretaries General: Prof. Jan Monkiewicz (Head of PROGRES and Liaison—Eastern Europe), Warsaw; Mr Walter Stahel (Head of Risk Management), Geneva. Heads of Programmes and Research Directors: Mr Brian K. Atchinson (Acting Head of Institutional Relations), Washington D.C.; Dr Etti Baranoff (Research Director for Insurance and Finance), Richmond; Dr Christophe Courbage (Research Director and Head of Health & Ageing and Insurance Economics), Geneva; Mr Daniel Haefeli (Head of Insurance and Finance), Geneva; Mr Anthony Kennaway (Head of Communications), Geneva. Special Officers:Mr Katsuo Matsushita (Liaison—Japan & East Asia), Yokohama; Mr Gordon Stewart, (Liaison— North America), New York; Dr Hans Peter Würmli (Chairman of Chief Risk Officers Network), Zurich. Chairman of the Scientific Advisory Council: Prof. Harold Skipper, Georgia State University, Atlanta. Former Presidents of The Geneva Association: Mr Raymond Barre, Paris (1973-1976); Mr Fabio Padoa, Trieste (1976-1983); Mr Julius Neave, London (1983-1986); Prof. Dr Dr e.h. Reimer Schmidt, Aachen (1986-1990); Sir Brian Corby, London (1990-1993); Drs. Jan H. Holsboer, Amsterdam (1993-1999); Mr Walter Kielholz, Zurich (1999-2003); Mr Henri de Castries, Paris (2003-2008); Mr Martin J. Sullivan, New York (2008); Mr Jacques Aigrain, Zurich (2008-2009). The Geneva Association Annual Report 2010/2011 1 The Geneva Association | Annual Report 2010/2011 The Geneva Association The Geneva Association 53 Route de Malagnou, CH-1208 Geneva, Switzerland E-mail: [email protected] Telephone: +41-22-707 66 00 Facsimile: +41-22-736 75 36 www.genevaassociation.org Published April 2011. Information included in this report is from 1 April 2010 to 1 April 2011. © The Geneva Association ISSN 2235-011X The Geneva Association Annual Report – 2010/2011 Published by The Geneva Association (The International Association for the Study of Insurance Economics) 2 www.genevaassociation.org Contents • Chairman’s Statement 4 • Secretary General’s Statement 6 • Board of Directors 8 • Key Collaborators 10 • Tribute to the Founder of The Geneva Association 11 • Insurance and Finance 13 • PROGRES (Programme on Regulation and Supervision) 31 • Risk Management 39 • Insurance Economics 63 • Health and Ageing 73 • The Four Pillars/Pensions 79 • Liaison Officers/Affiliated Organisations 88 • Other Events 99 • Publications 104 • The Geneva Association Online 114 3 The Geneva Association | Annual Report 2010/2011 Chairman’s Statement economic impacts of such an event—as much for the country as the individual. A pool that shares the cost of residential earthquake losses between Japanese insurers and their government has been implemented to deal with the devastation caused by the recent earthquake and tsunami. This mechanism is a good demonstration of the partnerships that can exist between insurance and governments. This is not just restricted to property and casualty claims either—the Nikolaus von Bomhard demographic implications of us all living longer Chairman of The Geneva Association, and the rising cost of healthcare are key areas Chairman of the Board of Management, Munich Re where insurance is the natural private sector counterparty for governments in addressing the he Geneva Association has been focused financial challenges of these changes. on the role of insurance in societies and T It is no surprise therefore that these are all areas economies for over 37 years and the last year where the insurance industry’s leading think has shown a broad spectrum of the benefits tank, The Geneva Association, has been focusing and importance of insurance in economies and its efforts over many years. The Association’s societies as well as the challenges that face the role is as a form of “radar” for the industry on industry. Paradoxically, whilst the Atlantic had upcoming issues, challenges and opportunities the most named storms since 2005 and was the for the industry and 2010/11 has consequently joint third most active season alongside 1995 been an extremely busy year. Last year the and 1887, none of the hurricanes made landfall developing world climate Statement by The in the U.S. Conversely, a series of significant Geneva Association’s Risk Management research earthquakes and weather-related natural programme, alongside UNEP-FI, the Munich catastrophes caused huge damage and loss of Climate Insurance Initiative and ClimateWise life, most significantly in Haiti, Chile, Australia, highlighted the importance of insurance and risk Pakistan, New Zealand (twice) and most management in the world’s efforts to mitigate recently Japan with the latter demonstrating with and adapt to a changing climate. The Statement, a tsunami and a consequent nuclear emergency, aimed at the COP16 negotiators and governments how sometimes one catastrophe can trigger a in the developed world, called on governments chain of further disasters. to pay more attention to the social value of risk The year’s events also demonstrated the management as well as insurance, particularly differences between the economies where risk in the developing world. The Risk Management management and insurance have played their Research Programme has had a dedicated focus part in mitigating the worst social and economic on climate risk and insurance for three years, effects of the disaster, and those areas where most recently encompassing the implications of their lack has been sorely missed, not least in climate and other liabilities on insurers. Haiti. The ongoing work of the Health and Ageing and As individuals and economies become wealthier, Four Pillars Research Projects bring together insurance has become more relevant than ever— the world’s leading academics and industry not less, as some economists predicted. And figures on the challenges and the issues raised whilst this is most true in the developed world, in by the rapidly lengthening life expectancy of the the developing world, a focus on risk management world’s population, the increasing costs of health and the adoption of insurance mechanisms would provision and the care of our increasing numbers 4 also go a long way towards absorbing some of the of elderly as well as the nature of retirement and www.genevaassociation.org Chairman’s Statement its funding. Similarly the Insurance Economics hard through The Geneva Association to assist Research Programme saw the second meeting regulators in their tasks, but only time will tell of the five-yearly World Risk and Insurance how well they will listen to this voice. Economics Congress