Scope and Purpose:

• The purpose of this research is to explore the impact of catastrophe risk (natural and man-made), on the financial markets and in particular on the risk management of insurers and reinsurers - with special attention to developing fields of alternative energy and green architecture.  Reading: "The Thin Green Line", January 2009, from http://www.bestreview.com)
• It includes investigation of the Texas Windstorm Insurance Association (TWIA) funding challenges and enabling legislation (2009 Texas legislature) will be explored.    

Process & Resources: during this semester, there may be guest speakers scheduled during class sessions. In addition, see the "Course Documents" folder on Blackboard, in particular the contents of the folder "RM 377". Study groups are encouraged. However, the assignment is an individual effort.

1. The first step is development of a common set of resources (links and articles) ... some of this has been done (see "Course Documents" and "Discussion Board" threads on Blackboard). This is a graded item.
2. Next, develop an outline - it should contain a depth of detail to three levels (e.g., I. A. 1. 2. then B. 1. 2. then II. A. 1. 2 then III...)  and reflect the intent of your individual research efforts. This is a graded item.
3. Last, completion of the paper, within the deadline.  It is to be submitted via SafeAssign (see end notes) and in class.

Outcome, or Research Results:   each student will write a research paper to incorporate research and reflections on the questions below. These must be addressed in a comprehensive, accurate, and up-to-date manner. 

In view of the "Scope and Purpose" statement above, provide your observations on the following:

• Markets: What is the insurance/financial services industry's risk appetite? What are the markets for risk management and insurance for these new financing and construction projects? - what lines of business, what markets, specialty or traditional, reinsurance or primary (or both); withdrawn from any markets, any initiatives / innovative products / new markets - current events and changes in rating.
• Risk Financing: How do they use traditional or alternative risk financing? Examine AIG, Marsh, AON...How do they use - on behalf of clients - any reinsurance, derivatives, catastrophe bonds, other alternative risk financing mechanisms?
• Technology: How do they use traditional or alternative risk financing technology? What are the major in-sourcing or outsourcing deals in past 5 years, modeling (e.g., catastrophe risk); compliance/regulatory tech usage (operational risk mgmt.); IT governance issues; scope and purpose; communications; customer service/information decimation
• Loss mitigation: What investment or activities, in the public realm? Community or state-based? How are they involved in the geo-political arena, such as influencing legislation and public policy, residual market mechanisms?
• Their (and your) observations and forecast - How do they manage risk? over the past three years, what are the trends?

Financial Services Facts (courtesy III)

Resource contributions due April 6
Preliminary outline due April 13
Hand in paper and post to SafeAssign: May 6