You are the Head of Risk Management for CJN plc, a general insurer. CJN plc provides a range of personal and commercial insurance policies directly to customers and also through insurance brokers. Claims are handled both in-house and by third party administrators.
CJN plc has its shares listed on a recognised stock exchange and has credit ratings provided by credit rating agencies. In common with other general insurers, CJN plc purchases reinsurance to protect itself against catastrophe and accumulation losses, but is finding this increasingly difficult.
The Board of CJN plc are aware that good corporate governance requires them to take into account the views and expectations of all their stakeholders. You have been asked by the Board to review and report on corporate governance regarding core insurance risks and the impact on stakeholder groups.
- Identify, with justification, CJN plc’s three most significant core insurance risks.
- Identify, with justification, CJN plc’s three stakeholder groups most affected by these core insurance risks.
- Analyse the potential impact on each of these stakeholder groups of these three core insurances risks.
- Make recommendations, based on your analysis, to balance the competing interests of these stakeholder groups with management of these core insurance risks.