Y​‌‍‍‍‌‍‌‍‍‍‌‌‌‍‌‌‌‌‌‌​ou are the Chief Risk Officer for TNL plc, a composite in

Y​‌‍‍‍‌‍‌‍‍‍‌‌‌‍‌‌‌‌‌‌​ou are the Chief Risk Officer for TNL plc, a composite insurer. TNL plc’s business performance over the last
five years has shown a decline in market share and profitability. This decline has arisen from a reduction in
TNL plc’s competitive positions in the markets in which it operates.
As a result of this decline in business performance, the Board of TNL plc has devised a new strategy to
increase its market share and improve profitability. This new strategy includes underwriting new classes of
business; both in existing and new territories. This strategy is based on​‌‍‍‍‌‍‌‍‍‍‌‌‌‍‌‌‌‌‌‌​ greater risk tolerance and an
increased risk appetite.
The Board has asked you to engage with TNL plc’s business functions to ensure that its business planning
adequately reflects the benefits and risks arising from the new strategy.
Question
• Identify, with justification, the business function of TNL plc most impacted by the new strategy.
• Analyse, for this business function, the most significant benefits and risks arising from the new strategy.
• Make recommendations, based on your analysis, to maximise the benefits and minimise the risks of the new st​‌‍‍‍‌‍‌‍‍‍‌‌‌‍‌‌‌‌‌‌​rategy.