Insurance companies understand the importance of risk management, but are struggling to cope with the implementation of enterprise-wide risk management (ERM) systems, according to a survey published by PricewaterhouseCoopers (PWC) today.While 100% of respondents agreed ERM was a board priority, 36% said it was not fully integrated into the strategic decision-making process.
The survey, the first of its kind conducted by PWC, questioned board members from 44 leading insurance companies from Asia, Europe and North America. Of these, 27 companies operate in life, 12 in property and casualty and five in reinsurance.
Andrew Stoker, director in the actuarial practice at PWC, said the results showed there was a consensus emerging on how ERM principles should be implemented. Among these principles was the establishment of risk committees and officers reporting directly to the board, and a clearly defined company risk appetite that is understood throughout the organisation.
Worryingly for the industry, 21% of respondents disagreed that common risk terminology and processes are well understood; while 17% said there were no systems in place to allow information to support risk management objectives.
Stoker said the industry is still some way behind the banks in ERM, but added that the signs were positive and insurers are catching up.
Topics: PricewaterhouseCoopers (PwC)
More on Risk Management
ABSTRACT In this paper, we study the evolution over time of the correlation structure of equity returns by means of a filtered-network approach and use this to investigate persistency and recurrences...
Stays will extend to buy-side, repo, and securities lending, says BoE’s Gracie
Welcome to The Journal of Computational Finance's Online First Forum. Here you will find the latest peer reviewed, accepted papers before they are available in print. With Online First publication,...
ABSTRACT We develop an efficient Monte Carlo method for the valuation of financial contracts on discretely realized variance.We work with a general stochastic volatility model that makes realized variance...
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.