London - Though still nascent, enterprise risk management (ERM) programs are becoming more established amongst European insurers, a report from Standard and Poor's (S&P) has found. In its report, "Enterprise Risk Management Assessments on Europe's Insurers," S&P surveyed 70 European carriers about their adoption and use of ERM programs.
The study says a marked shift in insurers' attitudes about ERM has occurred since 2005, when S&P started researching it and found the idea was foreign to most insurers. "Standard & Poor's is seeing greater interest by insurers in establishing ERM systems not only to meet regulatory requirements but also to boost their competitive advantages," it states.
The study, which consigned insurers to one of four classifications, found that 86% of insurers have "adequate" ERM programs in place. Only 2% earned S&P's lowest ranking, "weak" while 12% earned "strong" or "excellent" ratings.
Source: Standard & Poor's
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