North American and Bermudan insurance companies received an updated enterprise risk management opinion from
S&P describes an insurer's ERM program as a system of processes and practices that aims to measure and manage risk. The article in which the opinions appear, "North American and Bermudan Insurers Continue to Step Up Their Enterprise Risk Management Efforts," notes that S&P’s ERM opinion reflects “our assessment of the strength of an insurer's ERM program.”
"As the financial crisis continued to expose some less effective risk management practices, many insurance companies began strengthening their ERM frameworks," said Standard & Poor's credit analyst Howard Rosen. "This resulted in ERM improvements for some of our rated insurers. Six of the 15 companies that scored weak in 2009 improved to adequate," said Rosen. "We also have observed that insurers are focusing more on ERM in the form of new or improved processes they have implemented to better control tail risks."
Other findings include:
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The report is available