Now for the good news:
Realising the competitive potential of reporting convergence

Taking full account of risk

An economic framework for management reporting could help to ensure that decisions reflect the real risk-adjusted returns. It would also enable companies to move from multiple ‘versions of the truth’ to a more streamlined, consistent and credible basis of evaluation.

At a time when the economic slowdown is limiting business development opportunities, an economic approach could help companies pinpoint openings that may be missed by their competitors and target investment where it can earn its best return. However, many insurers have yet to fully embed risk considerations into business planning and strategic execution. Moreover, ensuring that model data, assumptions and controls are reliable enough to gain trust and acceptance from within the business is proving to be a significant challenge.