Uncertainty From Geopolitical Instability
Corporations are seeking ways to address and account for geopolitical risks with continued challenges in war-torn countries, major shifts in countries’ economies, market challenges and other emerging issues (reut.rs/1P4xcRU). There is an ever-present need (bit.ly/1KDGYo0) to proactively manage impacts on the supply chains, as well as to understand enterprisewide solutions that consider the geopolitical challenges.
CMS Releases Risk Corridor Data
This past October, the Centers for Medicare & Medicaid Services (CMS) released insurance payout data from the Affordable Care Act (ACA) risk corridors (go.cms.gov/1L4gn5V). Originally to be released in August, the 2014 data provides insights on the health insurance marketplace. According to CMS, the risk corridors program is expected to pay $362 million (on.wsj.com/1KQAl3U), although insurers requested $2.8 billion to cover their losses.
Addressing Global Climate Risks
Leading up to the G20 Summit this past November, there had been ongoing discussions on global climate risks and preparedness levels. For instance, several food manufacturers and the sustainability organization CERES (bit.ly/1j2xHPy) announced a call to action (bit.ly/1Mlx275) on agriculture impact from the changing climate. Reinsurers and a ratings agency discussed challenges ahead (reut.rs/1QmE2zu) with global warming.
Additionally, the Bank of England (bit.ly/1LNgLrb) recently expressed its concerns about insurance risks and liabilities from climate change.