Research finds many insurers have little or no strategic risk protocols in place

Future risk

The role of chief risk officer (CRO) is integral to the future success of insurance companies, according to a new report by Mazars and Chartis Research.

The report, ‘The case for enterprise risk management in insurance’, highlights how the CRO is the key link that can enable companies to embrace insight-driven risk-based solutions, and prove that enterprise risk management (ERM) is critical to enable insurers to maximise their future opportunities.

Gez Llanaj, head of risk and capital in Mazars’ financial services team, said: “’Doing ‘your best’ in risk management is not good enough anymore. Many insurance companies have little or no strategic risk protocols in place, and the research findings in this report clearly indicate that for insurance companies to survive, they will need to embrace integrated strategic, financial, operational and IT transformational programmes. These are most likely to be directed through strong CRO leadership, with additional guidance from the chief investment officer.”

He added: “A strong Solvency II ratio is not a guarantor of a successful insurance company. Insurers will need strong risk leadership, risk ownership, and an enterprise risk framework, all working in harmony to embed and execute risk decisions at all levels – and these will ultimately be the responsibility of, and delivered through, a properly empowered CRO.”