Insurance Risk Management

As a fully integrated risk practice, we have the size and capability to address all risk issues and deliver end-to-end solutions

Insurance Risk Management is the assessment and quantification of the likelihood and financial impact of events that may occur in the customer's world that require settlement by the insurer; and the ability to spread the risk of these events occurring across other insurance underwriter's in the market. Risk Management work typically involves the application of mathematical and statistical modelling to determine appropriate premium cover and the value of insurance risk to 'hold' vs 'distribute'.

Insurance Risk Management: Value

  • Alignment of the pricing market strategy and reinsurance arrangements to the organisation's risk appetite as well as optimising the goals of the organisation
  • Assist clients to recognise risk events and changes to claim rates earlier, so as to move towards a more market responsive, risk-based pricing approach which ensures the efficient deployment of capital and a reduction in extreme risk event losses.
  • Enhance the feedback mechanism from claims function to underwriting and product development processes to improve the performance and profitability of these processes.

Insurance Risk Management: Core Services

Enhanced Risk Strategies   Frameworks

Create the right risk strategies to achieve the enterprises strategic aims and implements the optimum frameworks to ensure risk is appropriately managed.

Work undertaken:
  1. Assessment, design and implementation of Insurance Strategies
  2. Assessment, design, implementation of Insurance Risk Frameworks
  3. Assessment, design and implementation of insurance risk related risk portfolios and assessment methodologies
  4. Assessment, design and implementation of Insurance Risk Appetite Statements
  5. Claims Function KPI design
  6. Commodity Sector Strategy Input
  7. Insurance Product Pricing
  8. Underwriting Function KPI design
  9. Reinsurance Program Design
An example:
  • Put in place an enhanced risk framework following an acquisition

Enhanced Risk Performance

Putting words into action – delivering risk performance within agreed tolerances at the sharp end – day after day.

Work undertaken:
  1. Insurance Risk Analysis – Trend analysis
  2. Insurance Risk Analysis – Exposure Measurement
  3. Insurance Risk Exposure Management
  4. Risk capital Reserving
  5. Claims Result Analysis
  6. Reinsurance Effectiveness
  7. Insurance Risk Aggregation and concentration risk measurement and management
  8. Peer review Actuarial Services
  9. Audit review of liabilities, capital etc
  10. Insurance Needs Assessment and/or Insurance Selection recommendations for non-insurance clients
  11. Risk Management Software Systems - Insurance Risk Underwriting Software Design, Specifications, Testing, Review
  12. Mergers and Acquisitions assistance
An example:
  • Assisted in the development of an enhanced Risk Appetite process for a general insurer.

Enhanced Risk Management Functions   Capabilities

Create the optimum organisational solutions and equips the enterprise with the right skills and capabilities to manage risk to achieve strategic aims.

Work undertaken:
  1. Assessment, design and implementation of Insurance Risk Management functions
  2. Claims Function – Assessment
  3. Underwriting Function Assessment
  4. Appointed Actuary Services
  5. Interim management solutions: Insurance Risk Officers and other professionals
An example:
  • Deployment of an experienced PwC Partner to act an interim CRO for the Wealth Business of a 'Big 4 Bank'.