December 10, 2025: College of Business invited Mr. Usman Mahmood, the Senior Director, Financial Risk at Tawuniya Insurance, to be part of CoB’s Executive Lecture Series.
The lecture titled “Why Financial Risk Management Matters in the Insurance Industry?” was presented to the audience and College of Business students.
Mr. Usman delivered an insightful and interactive lecture on the insurance industry, highlighting its global structure and its growing significance in Saudi Arabia. He emphasized the essential role of risk management within the sector and explained the unique nature of insurance as a product where both the buyer and the seller hope the coverage is never actually used. He also introduced the concept of risk pooling, where individuals with varying levels of exposure contribute to a shared fund, ensuring financial protection and reassurance when unforeseen events occur.
A key portion of the lecture focused on insurance solvency and capital requirements. Usman explained how solvency regulations ensure companies remain capable of paying claims, noting that insurance firms operate under stricter oversight than banks due to the long-tail risks inherent in the industry. He outlined the roles of major industry players, policyholders, brokers, insurers, and reinsurers, and highlighted underwriting as a critical function that defines which risks an insurer should accept.
Mr. Usman further discussed the fundamentals of underwriting, claims management, and how insurers evaluate risk to determine appropriate premiums. He stressed the importance of timely claim processing to maintain customer trust. The lecture also covered actuarial science, explaining how actuaries use data and trends to price products accurately and assess future liabilities.
In his concluding remarks, Mr. Usman outlined key principles of insurance risk management, including pricing, reserving, investment strategies, and maintaining a healthy combined ratio. He encouraged audience to consider the FRM certification and offered his support for anyone interested in pursuing a career in the field.
