Insurers have kept a steady eye on growth over the past few years, but they’ve also wrestled with ongoing volatility. As my last post mentioned, finance executives have helped manage this balancing act, keeping an eye out for both cost control and growth opportunities.
There are three primary areas of challenge. In brief they are:
The number one issue cited by insurance finance executives in our High Performance Finance Study, Insurance Report is a lack of integration. Unintegrated applications and processes are a leading concern. But integration struggles appear in other places:
- Finance and risk processes aren’t always connected.
- Organization models and governance can be siloed.
- Integration across risk and finance often is lacking.
Legacy systems can be complex, and they top the list of complexity challenges faced by insurers. Next in line, insurance companies report optimizing their capital structure, and then balancing the diverse needs of various stakeholders, as additional complexity challenges.
Fully 43 percent of survey respondents find regulation having a significant impact on finance functions. Not surprisingly, nearly all respondents (98 percent) believe regulation and compliance are “must get right” concerns for finance executives.
Given this variety of challenges, it’s encouraging that growth remains a priority for insurance providers. Devising a solid road map for addressing these concerns will enable providers to put even more emphasis on growing the business. My next post will discuss one critical step insurers can take to ease these challenges.