10 Insurance Risk Trends
Published August 21, 2012 11:09 AM
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Updated August 21, 2012 12:48 PM
1 Min Read
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1. ORSA
The National Association of Insurance Commissioner's Own Risk and Solvency Assessment (ORSA), inspired by Europes Solvency II, is placing greater emphasis on data and process governance, risk transparency and compliance, driving the need for data quality and consolidation that enhanced analytics can leverage.
2. Actuarial Speed and Efficiency
In order to improve risk management, actuaries are requiring more efficient modeling and analyses to enable robust, grid-enabled and scalable technology environments.
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3. Enhanced Risk Visibility
The move toward cross-territory supervision of insurance groups calls for a holistic approach to risk management across subsidiaries and holding companies, and for platforms that can support risk visibility across states, territories and provinces, and lines of business.
4. Consolidation of Information
U.S. carriers are looking to centralize information from disparate and traditionally separate valuation and projection modeling systems to achieve consistent views of risk.
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5. Enterprisewide Views
Ratings agencies are developing enterprise risk management (ERM) assessments and embedding them into their evaluation process, which is placing more pressure on publicly traded insurance carriers to embed risk management intelligence throughout the organization.
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6. Real-time Processes
Increasing regulatory requirements and high market volatility are driving insurers to generate real-time investment and accounting information.
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7. Big Data
Insurers are using business intelligence to leverage big data to help them estimate claims, assets, credit and market data, and gain deeper insights across networks of producers, policy holders and operations.
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8. Seeking Improved Business Results
Analytic and predictive modeling techniques are creating opportunities for increased sales, as well as improved efficiency and expanded service capabilities.
9. Talent Searches
Growing demand for highly specialized actuaries, increasingly at the heart of initiatives to improve risk management, is creating more competition among insurers vying for the best and brightest talent.
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10. Leveraging Cloud Agility
Volatility and the need for more frequent risk reporting require carriers to consider a pay-as-you-go business model in the cloud in order to scale up computing power rapidly and cost effectively.