ERM in the insurance industry: A global study

Enterprise risk management has reached a critical juncture as the demands of regulators, rating agencies and a more volatile market environment heighten the pressure on insurers to put risk considerations at the heart of their strategy and operations. Ever focused on risk and supporting insurers, PwC has once more committed to a detailed exploration of risk in relation to insurers.

Introducing two of PwC's risk leaders

Leading the team of international risk specialists that delivered this research Paul Horgan, US insurance advisory leader, shares thoughts and findings, and introduces Clare Thompson, UK FS risk advisory leader, to explore commercial implications.


Our 2004 study found that ERM had moved onto the boardroom agenda. However, ERM programmes had barely scratched the surface in all but a few leading companies as respondents grappled with the technical and organisational challenges of implementing and embedding effective ERM capabilities.
Four years on, ERM has come to a crossroads as investment and expectations have soared, yet many organisations have yet to realize the full benefits. Rating agency assessment and the move to Solvency II in the EU are raising the bar for ERM and have arguably been the primary drivers of progress in recent years. Common evaluation criteria include the strength and forward-looking capacity of risk assessment and control, the effectiveness of risk-based capital allocation and the extent to which risk awareness is integrated into governance, decision-making and strategic execution within the business.
Going forward, companies will need to demonstrate how they rate against the emerging set of expectations and standards for ERM. The practical challenge facing today’s insurers is how to continue implementing their ERM framework in order to meet these requirements over the next few years.