Blackrock/Latin American Market

Question 1

factors contributing to the separation between latin American INS market and developed countries

Answer 1

income growth
income distributiobn
financial stability
public policy

Question 2

reason for difference in penetration rates for iNS across Latin america

Answer 2

difference in risk based regulation (better allocation of capital)
development of market structure (reliable source for coverage)

Question 3

Top insurance markets in latin america

Answer 3

brazil, mexico, argentina

Question 4

definition of risk according to blackrock

Answer 4

range of possible outcomes around the mean

Question 5

definition of uncertainty according to blackrock

Answer 5

range of possible outcomes for the mean

Question 6

why does blackrock include uncertainty in their assumptions

Answer 6

because failing to consider it will lead to inaccurate assumptions that don’t reflect the real world.
can also lead to false confidence in investing

Question 7

why does blackrock include climate change in assumptions

Answer 7

potential that the future will be heavily impacted by climate change and it would be unrealistic to ignore it

Question 8

Controversy caused by blackrocks sustainability focus

Answer 8

gov - argues that they are against energy and the towns and people that need that industry to survive
climate activists argue they took a step back with their activism and their words are empty and actions speak louder

Question 9

EP curve

Answer 9

shows the liklihood (probability) that an event of maximum loss or greater will occur in a given year

Question 10

return periods

Answer 10

describes an estimated liklihood of a loss of a given size (max or greater) occurring in a given time frame