Mark has a significant level of experience with ceded reinsurance, insurance risk management, and enterprise risk management through his executive roles with Chubb, AIG, and CNA. Identification, quantification, and mitigation of risk underpin his perspective and decision making. As a former underwriter, Mark has a fundamental understanding of how risk decisions manifest themselves on the balance sheet, both in the form of single policy exposures, as well as potential accumulation risks to large events such as natural catastrophes, terrorism, and more recently cyber exposures.
Mark has expertise in setting the strategy for the purchase of reinsurance treaties that protect against both catastrophic events involving multiple risks and single risk volatility –the horizontal and vertical spectrums of risk, for all P&C lines of business including property, general liability, umbrella, workers compensation, auto liability, management & professional liability, surety, marine, and energy. Reinsurance treaties remain the single best method to hedge the insurance risk that sits on the CNA balance sheet because treaties are the best match with a policy’s coverage definitions and duration. Assessing catastrophic risks requires a deep understanding of the inputs and the model structures used to calculate the expected losses from third party vendor based models. Mark is very familiar with these models that produce the probabilistic outcomes for events such as hurricanes, earthquake, and terrorism events –as well as the developing science for cyber-attack event modeling.
Mark maintains longstanding relationships with the executives of all major reinsurance companies and brokers, and he is well connected to the alternative capital sources in reinsurance, due to his management of the issuance of six catastrophe triggered cat bonds while at Chubb, including ILS funds and hedge fund backed reinsurers, which now represent about 20% of the capital supporting the reinsurance market. Mark is also experienced with the importance of system integration, and loss identification in order to maximize the recoveries of CNA’s multi-billion dollar reinsurance recoverable asset over a multi-decade period having managed reinsurance claims teams for more than fifteen years.
Mark’s experience in enterprise risk management (ERM) has focused on the identification, measurement, and control of underwriting and operational risks. He has been closely involved in setting the maximum risk tolerances for catastrophic events, as well as thinking through the potential impact of emerging risk exposures and the necessary discipline and controls to maintain an acceptable risk appetite as defined by senior management, including underwriting authority and guidelines. Of course, ensuring capital adequacy to maintain solvency and acceptable agency ratings after catastrophic events is a key component of defining acceptable risk thresholds both on a gross and net basis (after reinsurance & after tax) and he has a strong working knowledge of both.
Through his work in ERM, Mark has been involved in risk adjusted capital allocation exercises for property and casualty lines of business and the necessary translation of capital allocation targets into operational underwriting targets. He is familiar with the risk adjusted view of underwriting returns necessary to take advantage of market dislocations as well as in the consideration of new lines of business or new ventures.
Mark has extensive experience working with rating agencies, board of directors, and regulators, where he has reported on material risks, and risk mitigation strategies, that could expose the balance sheet or threaten earnings targets. He believes that the best risk mitigation strategy is to create a culture of risk awareness and accountability, such that all decision makers within CNA think through the longer term implications at the time of making a decision. A culture of risk awareness, combined with appropriate risk controls at all levels, will guide CNA through many challenging situations when dealing with both quantitative and qualitative risks that present themselves daily.
Ultimately, Mark believes that ERM, when properly executed can add significant value to CNA, as it moves from the compliance and risk control phase, to risk-return optimization, and eventually to the integration into strategy decisions whereby advanced risk analytics and models are linked to key business processes, strategies, and bottom line results.
Mark holds a BA in Economics from Indiana University of Pennsylvania and a MBA from Duke University's Fuqua School of Business.