Model risk management comes of age: Now what?

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Earlier this year, PwC surveyed 58 large and medium insurers that write life, P&C or health in the US market. Prior to 2010, none of them had a formal model risk management (MRM) program. By 2020, however, 90% expect to have one.

As organizations continue to adopt MRM programs and as those programs mature, insurers will be able to get more value by:

  1. clarifying roles and goals,
  2. promoting cost effectiveness,
  3. determining how to measure success, and 
  4. determining MRM’s position in the risk taxonomy.

How PwC can help

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.

Contact us

Dana Hunt

Insurance Risk and Regulatory Services Partner, PwC US

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