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May 22, 2012updated 13 Apr 2017 8:44am

Insurers missing Solvency II risk opportunities

The survey, from global consulting firm Protiviti, said whileinsurers are continuing to invest in risk technologies to help meet compliance demands, a general tick-box attitude to risk means UK insurers aremissing out on the enterprise-wideopportunities presented by regulation such as Solvency II. The survey found that almost two thirds of survey respondents report that chief risk officers or heads of risk are are still not on insurance companies boards of directors,

By Peter Johnstone

A new survey suggests that a board-endorsed risk culture has failed to take root in UK insurance companies.

The survey, from global consulting firm Protiviti, said while insurers are continuing to invest in risk technologies to help meet compliance demands, a general ‘tick-box’ attitude to risk means UK insurers are missing out on the enterprise-wide opportunities presented by regulation such as Solvency II.

The survey found that almost two thirds of survey respondents report that chief risk officers or heads of risk are are still not on insurance companies’ boards of directors, 

In addition, the survey found that only 1 in 5 of executives surveyed said their  firms used risk-based return on capital measures in business planning while 48% reported that the board always sets risk appetites

Peter Richardson, managing director at Protiviti UK, said: “The need to embed risk culture in insurance organisations may be widely recognised, but Protiviti’s research shows there is a long way to go before boards regard it as more than simply tick-box compliance.”

He added: “The question to ask is whether during this next wave of risk management, CROs will be sitting on the board as a matter of course and implementing strategic risk management or just applying risk management processes?”

 

 

 

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