Systemic Risk of Modelling in Insurance
Systemic risk is increasing in relevance due to the growing level of globalisation, interconnectedness, and speed of business transactions in our world. Whilst these trends are beneficial they also introduce new complexities to some existing risks. The natural response to a more risky and interconnected world is to try quantify it and thus modelling as a means to better understand risk is becoming increasingly common and in itself, complex. Systemic risk of modelling (SRoM) is by its very nature often difficult to quantify partly due to the way in which many, often sophisticated, systems interact with each other.