Risk management

Current market challenges facing the insurance industry 

Risk management functions are facing challenges in many areas. The external environment has become increasingly volatile, complex, and interconnected, with regular emerging crises. Firms' strategies are rapidly evolving to embrace new technologies, accounting and regulatory frameworks, and operating and business models. Regulators continue to raise their expectations of insurers in response to these external and internal developments, across both prudential and conduct areas.

CROs and their risk teams struggle to keep up with the speed of change and may lack the expertise required to effectively oversee the widening risk landscape. This hinders their ability to effectively manage all risk types and to continue to add value and insight for the business. Recent crises in the banking industry (the collapse of Silicon Valley Bank and the buyout of Credit Suisse) demonstrate the consequences of weak risk functions. Insurers’ risk organisations, frameworks, methodologies and communications all need to evolve to meet these needs. Otherwise, risk may be perceived as slow and reactive, or worse, issues may be missed before a crisis hits.

How can we help with risk management?

We can ensure our clients’ risk teams remain relevant and effective, and establish, maintain, and implement all aspects of the risk management process and framework across all risks. Examples of the services we provide include the following:

Organisation, governance and risk management framework

• Risk management operating model and maturity analysis.
• Risk culture review and development.
• Interim resourcing, including for CRO.
• Production and review of risk policies, standards, and other documentation.
• Risk committee design/support (terms of reference, agenda, papers, facilitation).
• Design and implementation of overall group/entity risk management framework.
• Design and implementation of risk appetite framework and risk limit framework/methodology.

Reporting and monitoring for risk management 

• Design and implementation of internal risk reporting, processes and automation.
• Identify risk KPIs suite and enhance risk analytics and insights.
• Risk reviews and assessment (transaction, projects, thematic, etc).
• ORSA reporting, projections and scenarios.

Operational risk

• Operational risk framework and methodology design.
• Analysis of operational risk data and operational risks reporting.
• Control/ICS effectiveness review.

Quantitative risks and capital

• Insurance, solvency, liquidity, reinsurance counterparty risk expertise, quantification and analysis.
• Risk category specific frameworks and methodologies. Appetite and limits, mitigation and optimisation.
• Capital management policy and framework. Capital optimisation, reporting, analysis and planning.
• Risk management M&A due diligence.
• Stress and scenario testing.

Get in touch with our insurance experts

To speak to a member of our Insurance Risk Consulting team about our Risk management services, get in touch using the button below.

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