Ernst & Young (E&Y) has carried out what it claims to be the first survey of insurance chief risk officers (CROs) in Bermuda, as their positions become increasingly important.
According to the company the survey reveals that the CROs’ roles are established within their individual organisations, with 100 percent of respondents confirming that they had unfettered access to the board, risk and audit committees.
One of the findings of the survey is that Solvency II poses challenges, but has not been a game changer for Bermuda CROs: as opposed to their American and European counterparts, they are satisfied with the level of regulatory scrutiny.
However, risk appetite remains an area for improvement and only 33 percent of Insurance CROs believe they have reached full consistency between top-down statements and bottom-up limits.
The E&Y report also claims that people and skillsets will remain a priority for investment, claiming that 70 percent of respondents will prioritise investment in people and skills in the future.
In addition, here is some commentary from the authors of the report:
“Insurance CROs in Bermuda are taking on an increasingly important role within their firm’s decision making process, growing their influence outside of the traditional risk processes and becoming a visible contributor at the executive table,” said Paolo Fiandesio, senior manager at E&Y and principal author of the survey. “The rapidly evolving risk landscape and the regulatory agenda have undoubtedly enhanced the CRO role and standing, reinforcing the risk discussion at board level; CROs are clear on the need to ensure they are perceived as a ‘trusted partner’ to enable business success.”
“As the CRO role continues to evolve, our participants are cognisant of the areas of improvement within their risk frameworks, ranging from ensuring a consistent understanding of risk appetite at all levels to striking the right balance between technology and skills within their functions,” added Chris Maiato, principal and BBC advisory services leader, at E&Y. “As the external risk environment continues to evolve, risk functions have the opportunity to enhance existing capabilities for the effective and efficient management of the new and evolving risks facing the insurance industry.”
Ernst & Young, E&Y, Survey, Chief risk officer, Bermuda