Can compliance and competitiveness coexist? Yes. In fact, Accenture believes that insurers can improve their risk management capabilities—and generate value while reducing costs.
The new opportunities of risk
While many insurers are focused on Solvency II regulations, they should also look at the bigger picture to see how making risk-based decisions can help them achieve a competitive advantage. In particular, they should align risk with strategy, and integrate risk management into key business processes.
The new challenges of risk
Accenture surveyed C-level executives at 48 global insurers to identify the major challenges faced by the risk management function. Here’s a summary of what they said:
The main challenge for insurers is to improve risk management capabilities while reducing costs. The major cost driver in risk management is inconsistent execution of risk management in key business processes. Many organizations lack a consistent risk management framework, so individuals in different processes use different standards and data, and therefore, have different responses. The key to minimizing costs is a standardized, integrated approach to risk management for all business processes
The Accenture Risk-Adjusted Operating Model
The Accenture Risk-Adjusted Operating Model (RAOM) is designed to help insurers address the challenges of risk management and ultimately, help them turn compliance into a competitive advantage. Join me next week as I share four considerations for integrating risk management throughout the enterprise.
To learn more, download A New Risk-Adjusted Operating Model for the Insurance Industry (pdf; opens in a new window).