There is a measurable gap between the maturity of surveyed insurers’ strategic risk management capability and their perceived future need for these capabilities. This, one of the most notable findings from the Accenture 2013 Global Risk Management Study, means insurers may have their work cut out for them in the years ahead.
While insurers have made tremendous investments in developing their risk functions in recent years, the ones we surveyed say there is still room for improvement. The three key areas are:
- Compliance. Only 28 percent of insurers have the capabilities to achieve compliance with regulations, yet nearly all see the risk organization as critical or important to achieving this need.
- Reputation. Only 27 percent of insurance respondents claim to have the capabilities to manage reputational risks, yet 94 percent see their risk function as critical or important in delivering on this need.
- Risk culture. Again, only 27 percent of insurers claim to have the capabilities to infuse a risk culture in their organization, with 68 percent claiming that the risk function is importance in doing so.
The next step for insurers is to integrate risk at the operational level. Join me next week when I look at what our findings reveal about where risk is the most integrated in core insurance functions.
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