Our risk strategy approved by the Executive Board defines both the strategic orientation and the risk appetite. Furthermore, we manage natural perils business – which is subject to particular volatility – by specifying risk measures, limits and thresholds in order to reduce potential accumulation risks. With our General Underwriting Guidelines and Special Underwriting Guidelines, which all underwriters are required to acknowledge and respect, we have at our disposal policies that substantiate our business decisions. Our underwriters receive regular training as required.
As a general principle, every identified risk that is considered to be material is evaluated quantitatively. Only risk types for which quantitative risk measurement is currently not possible or scarcely practicable are qualitatively evaluated, for example by means of expert assessments. Such risks include emerging and strategic risks as well as reputational risks.
Risk management is permanently integrated into our business processes. It is supported by transparent risk communication and an open approach to dealing with risks. Risk communication takes the form of, among other things, internal and external risk reports, information on current risk complexes published in the intranet and training activities for staff. The regular sharing of information between risk-steering and risk-monitoring units is fundamental to the proper functioning of risk management.