This is the last in a series of posts discussing the Accenture High Performance Insurer study. In this post, I will discuss one more attribute that insurers must develop: active risk management. I will also make recommendations for how insurers can use this information to achieve high performance.
Active risk management
The recent economic situation has dispelled any myths that effective risk management is anything less than crucial. Risk management extends to the entire enterprise, including active mangement of underwriting risk, investment exposure, enterprise risk, threats to customer privacy and control of financial flows.
Risk management includes keen understanding of the risk, plus active, effective steps that control and mitigate for risk.
Putting the pieces together
Over the course of this six-part series, I have discussed five challenges facing insurers, as well as five key attributes that will help insurers address those challenges. These attributes require extensive work to develop and implement, but are critical if insurers are to achieve high performance.
Accenture’s research found successful insurers must:
- Achieve excellence in two of the five key attributes.
- Manage the other three attributes to a satisfactory level.
- Have the ability to objectively re-evaluate the enterprise: its products, processes, skills and infrastructure.
- Be willing to modify or transform the enterprise when the market requires it.
How will your business achieve these objectives?
Catch up on previous posts in this series:
- Part 1 of 6. Overview of the Accenture High Performance Insurer study.
- Part 2 of 6. Challenges facing insurers: tougher economics and more demanding customers.
- Part 3 of 6. Challenges facing insurers: evolving technologies, altered global market structure and competitive forces.
- Part 4 of 6. Attributes of high performance insurers: effective customer-centric distribution and responsiveness to the market.
- Part 5 of 6. Attributes of high performance insurers: consistent operational excellence and relentless pursuit of cost reduction.