In our previous report, Model risk management comes of age, we explored on the rapid growth of model risk management in the insurance sector, especially at large and medium sized insurers. We proposed that the industry had gained sufficient experience to move from start-up mode to implementing ideas that better operationalize MRM programs.
In this paper, we explore in more detail some of those ideas, particularly those that can improve cost effectiveness.
Insurers looking to improve the cost efficiency of their model risk management program should consider the following opportunities:
Our insurance risk and capital management practice advises insurers on assessing, monitoring and managing risks from all sources. Multi-disciplinary teams provide comprehensive services in all key risk areas:
PwC’s professionals also address risk management framework components, including strategy, governance and organization, measurement and analytics, reporting, and systems and data infrastructure.
Insurance Risk & Regulatory Services Leader, PwC US