A new survey suggests that a board-endorsed
risk culture has failed to take root in UK insurance companies.
The survey, from global consulting firm
Protiviti, said while insurers are continuing to invest in
risk technologies to help meet compliance demands, a general
‘tick-box’ attitude to risk means UK insurers are missing out
on the enterprise-wide opportunities presented by regulation
such as Solvency II.
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The survey found that almost two thirds of
survey respondents report that chief risk officers or heads of risk
are are still not on insurance companies’ boards of
directors,
In addition, the survey found that only 1 in 5
of executives surveyed said their firms used risk-based
return on capital measures in business planning while 48% reported
that the board always sets risk appetites
Peter Richardson, managing director at
Protiviti UK, said: “The need to embed risk culture in insurance
organisations may be widely recognised, but Protiviti’s research
shows there is a long way to go before boards regard it as more
than simply tick-box compliance.”
He added: “The question to ask is whether
during this next wave of risk management, CROs will be sitting on
the board as a matter of course and implementing strategic risk
management or just applying risk management processes?”
