This post is the second in a four-part series about Accenture’s most recent Insurance Equity Analyst Survey. You can find the previous post here.
Two of the most notable consequences of the economic crisis are a volatile business environment and persistent efforts by the authorities to enforce more effective risk management. So it’s hardly surprising that equity analysts—in Accenture’s recent global survey—rate risk control as the most important priority for insurers hoping to receive superior ratings.
Rather than simply appointing a dedicated risk manager to meet compliance, companies should:
- Align risk management with their overall business strategy and integrate it with their key business processes
- Reduce their exposure to system failure by modernizing their operating platform
- Look at de-risking the assets on their balance sheet
- Upgrade data collection, analytics and reporting capabilities
- Implement an enterprise-wide framework for data management
- Integrate risk and finance management processes throughout the organization
Risk management should play a bigger role in operational planning than it currently does. A strategic, enterprise-wide approach will generate benefits way beyond compliance, providing stability and an enduring competitive advantage.
In my next post I’ll discuss what equity analysts believe is insurers’ second priority for high performance: achieving sustainable growth. In the meantime, to learn more, click here to download the life version of our survey report, and here for P&C.