Top Issues of 2013: Risk Management, Strategy and Operations — Report

PwC identifies several key challenges that insurers will face during 2013, in areas such as risk management, strategy and operations.

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Top Issue: Risk Management/RMORSA Readiness

Insurers are due on Jan. 1, 2015 to demonstrate compliance with the 2011 Risk Management and Own Risk and Solvency Assessment (RMORSA) Model Act. Carriers need to perform their Own Risk and Solvency Assessment (ORSA) represents a fundamental shift in scrutiny of the industry’s enterprise risk management (ERM) practices, according to the PwC report.

PwC reports that 35% of respondent companies do not have a fully operational risk appetite with tolerances linked to business strategy. Thirty-eight percent of company boards are either not engaged or only passively engaged in risk management. And yet 82% of respondents believe that existing ERM process are largely or already adequate for RMORSA.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio

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