The insurance industry is in a state of flux. Incumbent insurers are seeing an increase in regulation, disintegration of the value chain, increasing competition, and changing customer needs. Insurers have also become aware of how their business practices need to adapt, especially in non-actuarial risk management.
Additionally, the financial crisis has made customers much more aware and financial products are different than they used to be. This has put insurance firms under financial pressure. It is also necessitating a review of the risk and compliance processes. Coordinating and aligning activities and reducing the burden on business should be high on the agenda.
Traditionally, insurance firms are very data driven, and supporting GRC processes and tools should be no exception. Centralizing the capture of risk and control data throughout the lines of defense (the business, operational risk, compliance, information security, and 3rd party/vendor management) assures that data is consistent, aligned with the risk management framework, and that practices are being sustained. Audit teams should also be using modern audit techniques that are risk-based and data-driven. BWise is able to provide the best practices and the technology to accomplish this and much more.
BUSINESS CONCERNS FOR INSURANCE
Insurers must begin to address their business model as lower than average growth and interest rates have affected the industry. Customers are armed with an array of data and the proliferation of technology is creating transparency, speed, and flexibility. Insight into emerging risks and how that is translating into business practices is becoming more important for an insurer to make better business decisions and satisfy regulators and stakeholders alike. For example, insurance companies must manage a number of regulations, including clarity in financial reporting for Sarbanes-Oxley, Solvency II in Europe, and the Model Audit Rule (MAR) in the U.S. These initiatives create more business processes and information that must be assessed, managed, and reported upon. Regardless of the risk, BWise’s solutions can provide real-time insight into the risk profile, enabling better decision making.
A HOLISTIC SOLUTION
BWise empowers insurers to easily configure the tool to support their operational risk management process. Built on leading practices, BWise supports for the efficient capture, mining, and reporting of risk information. Not only does BWise offer a consistent approach to risk management, it has tailored solutions to support specific risk management activities such as compliance, vendor and third party management, information security, and audit. This allows the business and functions to manage specific exposures while simultaneously aligning to a common taxonomy and view of the organization as a whole. Ultimately, the insight that BWise offers can help insurers understand their risks and the costs and time associated with management and control. This enables greater support to decision making and creates savings and efficiencies.