When reviewing risk committees currently in place among insurers, Accenture found risk management is increasingly integrated in areas such as underwriting and financial risk management, but less so for operational risk management.
In our 2013 Global Risk Management Study we asked insurers: to what extent is risk management embedded into the following core insurance functions within your organization? Here’s how the numbers stack up:
- Underwriting—57 percent.
- Risk analysis and corporate strategy—54 percent.
- Reinsurance and financing; and claims and benefits management—53 percent.
It is important to note, however, only about 50 percent of life insurers report that the risk function is embedded “to a great extent” or “to some extent.” For most areas, reported levels of integration are notably higher for property & casualty insurers. The good news? Overall, there appears to be a strong trend toward risk integration.
In next week’s post, I’ll explore the significant issues insurers need to fix to achieve compliance with major-sector regulatory reform.
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