An analysis of commercial risk management : valuing the industry

Abstract

Financial markets have been at the forefront of media scrutiny since the fall of the banking sector in 2008. The resulting crash left many homeless, jobless, and with little hope for the future. The road to recovery has been long, but the markets have begun to bounce back following an historic collapse. The commercial risk management industry has borne much of the scrutiny as part of the financial services sector. For this project, I will take a sample of the financial services sector, the commercial risk management industry, and analyze the firms in that industry to determine the extent to which recovery has taken place, and the viability of the industry moving forward. Through an analysis of the industry, I conclude that the outlook for commercial insurers is positive for the next 12-24 months. This conclusion is derived from the use of ratio analysis and pricing models to determine a value for the industry.