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Broadstone urges insurers to quantify geopolitical risk via scenario analysis to assess ORSA, Solvency Capital Requirement, pricing, reserving, capital modelling and reinsurance amid rising conflicts, inflation and market volatility

Published on: 27 June 2024

Published by a Law360 reporter
Legal News
Article summary

Broadstone, in its latest insurance risk monitor, cautioned that intensifying geopolitical strains — notably the Israel–Gaza and Russia–Ukraine wars — could dampen economic activity, drive up inflation and heighten market volatility. It called on insurers to gauge the probability and potential costs of any further geopolitical deterioration through structured scenario analysis.

Bharat Raj, head of London markets at Broadstone’s insurance, regulatory and risk division, underscored that today’s unsettled geopolitical setting is a major global worry, highlighting the long-running conflicts in Ukraine and the Middle East...

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