Continuing my blog series about the insurance version of Accenture’s 2014 High Performance Finance Study, this post will look at how complexity and regulatory challenges are taxing insurers.
Our third finding in this report was that complexity, in its various guises, is a key challenge. The senior finance executives in this survey point to complex legacy systems and environments as their number one issue.
Other aspects of complexity also loom large. The third biggest challenge, after legacy systems and the need to optimize the capital structure, is managing the complex needs of diverse stakeholders. Surveyed insurers also highlight the difficulties of managing new and complex risks as an important challenge.
Insurers cannot completely avoid these complexities, but they can manage them through concerted action to simplify, standardize and optimize their business processes.
The fourth finding is not surprising: regulation continues to have a high impact on the insurance industry. Among insurers surveyed for this research, an overwhelming 98% say that addressing regulatory and compliance issues is important to their finance function’s performance.
The CFO’s influence in helping the organization to manage its compliance burden continues to grow—57% of respondents say that the finance leader’s influence in proactively responding to regulatory changes has increased.