Now that insurers have spelled out their goals for 2015 (see Insurers’ risk capability goals for 2015), they will need to take the necessary steps to reach them. In this final post in my “Global Risk Management Study” series, I explore the three things insurers should do differently.
Insurers’ to-do list
Accenture suggests insurers that wish to reach their risk capability goals for 2015 should consider the following actions:
- Manage compliance through a transformational lens. Some insurers are developing a long-term plan for the risk function and manage compliance from a centralized perspective. This approach enables companies to leverage the investment made to address regulatory requirements to create new risk function capabilities current market pressures demand.
- Develop a risk-adjusted operating model. Insurers are increasingly integrating the risk function with strategy, performance management and capital optimization. Embedding the risk function in this way requires strong cooperation between the risk and finance functions, with timely and reliable data often integrated across the two functions.
- Treat risk management as a people game. Adding risk expertise and specialized talent can help increase the value-added of risk to the rest of the business. For example, emerging-risk expertise or adding specialists in risk data analysis and risk modeling can be as important as adding systems in these areas.
Insurers face a number of challenges—market volatility and regulatory initiatives to name a few. Yet, the insurers we talked to showed no sign of defeat. They’ve got their eyes on the road ahead and are focused on addressing the risks to their industry. While their goals are ambitious, insurers with the right focus will be rewarded with a return on their investment.
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