Reinsurer of the year: SCOR
Managing risk should be the very definition of a holistic activity and Scor has demonstrated its excellence across an array of actions.
The French reinsurer is making a strong contribution to manage climate risk on both sides of the balance sheet. On the asset side, it has stopped investing in companies deriving more than 30% of their turnover from thermal coal. On the liability side, the company is also restricting the related underwriting. Climate campaigners have praised Scor for making among the best efforts to disengage from the coal sector.
Scor supports actuarial science by recognising 10 papers covering topics such as capital requirements in Solvency II, reserving and catastrophe risk management through its 2017 awards in five countries. The awards promote actuarial science, encourage research in the field and contribute to the improvement of risk knowledge and management.
Recent catastrophes such as hurricanes Harvey, Irma and Maria and two earthquakes in Mexico have hit many re/insurers, but Scor's capital management shielded it from significant damage.
The strategy ensures efficient protection of the group's shareholders through a series of protection layers, including traditional retrocession, capital market solutions, solvency buffers and a contingent capital facility, designed to act as a last resort to raise new capital and replenish equity in case of extreme events.
Over the past 10 years, Scor has developed a holistic internal model, but the firm continues its model development through engagement with business partners, the industry and academia.
This involves frequent scientific publications by Scor's modellers and actuaries, and the regular adoption of recent academic research for further model improvements. In 2017, Scor obtained approval for its revised operational risk model, which is used to assess the risk-return balance of major projects and cyber cover purchases.