Many insurers are making the shift from product-centricity to customer-centricity, a journey that means breaking down silos between business functions. Similarly, to achieve the agility needed to compete in today’s market, insurers need to facilitate and foster more frequent interactions between its C-suite executives. In this Insurance Chart of the Week, I’ll look at the interactions between the chief risk officer (CRO) and chief financial officer (CFO).
Insurers need to better align risk and finance functions
One key finding of the Accenture 2015 Global Risk Management Study is that just 22 percent of North American insurers say there is frequent interaction between the CRO and CFO, compared with 32 percent of insurers in the rest of the world. What’s also of concern is that almost one-quarter (24 percent) of North American insurers reported that risk and capital models are developed largely independently in the risk and finance functions, respectively.
Technology can enable these partnerships. For example, 86 percent of North American insurers see digital as a way for risk to better work with the business, compared with just 35 percent of insurers elsewhere. Just one example: helping to integrate finance and risk data into a single, enterprise-wide dashboard for more informed decision-making. That collaboration can have trickle-down effects throughout the business, and is especially important for the claims function, where the insurer’s hard-won money is spent.
- Read Insurance risk and reward, part 1: The role of the CRO | Insurance Chart of the Week.
- Read Insurance risk and reward, part 2: Customer-centricity | Insurance Chart of the Week.
- Register to download Accenture 2015 Global Risk Management Study: North American Insurance Report (pdf).
- Download the infographic: Risk management in the North American insurance sector (pdf).
- View other Insurance Chart of the Week
- Email me to discuss how Accenture can help insurers better align their risk and finance functions.