FIAR, Sinaia May, 2011 CHANGES AND CHALLENGES (Re)insurance in C.E.E. in the 21 st Century (Re)insurance in C.E.E. in the 21 st Century

GLOBAL CHANGES LOCAL CHALLENGES ENTERPRISE RISK MANAGEMENT TRUST RE AGENDA AGENDA

SPEED INTERNET NATURE: food, water, energy INNOVATION RISKS CAN COME FROM MANY SOURCES GLOBAL CHANGES GLOBAL CHANGES

GLOBAL CHANGES DEMOGRAPHIC CHANGES MARKET RISKS NAT CATASTROPHES REGULATIONS POLITICAL RISK TECHNOLOGY theory & practice

RISKS RISKS CYCLE MGMT UWR DISCIPLINE CONTROL RESPONSE MODELS PROCESS PRICING TOOLS “WHAT IF” SCENARIOS CAPITAL ALLOCATION CORPORATE GOVERNANCES TRATEGY TACTICS OPERATION LOCAL CHALLENGES COMLEXITY IS INCREASING

ERME.R.M. E NTERPRISE R ISK M ANAGEMENT = E.R.M. COMPREHENSIVESYSTEMATIC APPROACH A COMPREHENSIVE, SYSTEMATIC APPROACH FOR HELPING ALL ORGANISATION TO: IDENTIFY  IDENTIFY  MEASURE  PRIORITIZE  RESPOND TO THE RISKS - ACTIVELY MANAGE THE RISK EXPOSURE - ACTIVELY MANAGE THE RISK EXPOSURE - BE READY TO PAY THE FUTURE CLAIMS Source: COSO Definition of E.R.M.

STRATEGIC OPERATION REPORTING COMPLIANCE Source: COSO Enterprise Risk Management – Integrated Framework COSO. GOALS ORGANIZATION E.R.M. FRAME

WHAT MUST BE DONE? Define the risk universe (our set of risks) Agree on a common risk language Embark on a risk education process Assess the current state of risk awareness Define risk appetite and set levels of risk tolerance Assess risks Identify and evaluate any existing controls Decide appropriate risk responses (accept, avoid, share, mitigate) to each of the risks in our risk portfolio Integrate controls with responses

THE ESSENTIAL COMPONENTS OF E.R.M. People Good Will & Trust ERM Capital & IT THESE COMPONENTS DINAMICALY IMPROVE AS A RESULT OF E.R.M OF E.R.M. THESE COMPONENTS DINAMICALY IMPROVE AS A RESULT OF E.R.M OF E.R.M. KNOW HOW EXPERIENCEMOTIVATIONTRANSPARENCYCOMMUNICATION PROACTIVE DECISION KNOW HOW EXPERIENCEMOTIVATIONTRANSPARENCYCOMMUNICATION PROACTIVE DECISION

TRUST RE UWR SUMMARY y 2011 TREATY CAPACITIES Non-Marine: US$7,500,000 Marine: US$3,750,000 FACULTATIVE CAPACITIES Energy Onshore: US$40 mio on PML Energy Offshore: US$40 mio on PML Property: US$30 mio on PML Engineering: US$21 mio on PML Liability: US$5 mio per occurrence Marine Hull: US$8,750,000 Marine Cargo: US$8,750,000

TRUST RE CONTACTS TRUST RE, BAHRAIN Jalal Tabaja Regional Manager Trust Tower, Building 125 Road 1702, Diplomatic Area 317 P.O. Box Manama, Kingdom of Bahrain T+: (+973) F+: (+973) M+: (+973) TRUST RE, CYPRUS Sinisa Lovrincevic Head of Business Development Ariadne House, 4 th Floor, th October Street P.O. Box 58024, CY 3730 Limassol, Cyprus T+: (+357) F+: (+357) M+: (+357)

THANK YOU FOR ATTENTION! TRUST RE RATING A- (Excellent) by A.M. Best BBB+ (Stable) by S&P