Not So Secondary Anymore: A case study of how a reinsurer manages increasing natural catastrophe risks beyond established risk management systems

Sammanfattning

This study examines how emerging risks that cannot be effectively managed within established risk management systems, but remain strategically relevant, are managed beyond such systems. To explore this phenomenon, a qualitative single-case study was conducted at a leading global reinsurer, focusing on how they respond to the increasing frequency and severity of natural catastrophe losses, particularly secondary perils such as hail and floods. The findings are analyzed using Callon's (1998) framing and overflowing theory, complemented by Çaliskan and Callon's (2009, 2010) concepts of economization and marketization. The study finds that risks which do not fit are excluded from the traditional risk management systems to protect their functioning and profitability, while simultaneously being economized through alternative systems. The study contributes to the risk management literature in two ways. First, it extends current understanding of how organizations manage risks within and beyond established risk management systems. Second, it contributes to research on risk as an object by highlighting the recursive process in which sociotechnical actors and market conditions shape how risk is managed within the industry.