Insurance Risk and Compliance Benchmarking Survey

A spotlight on how risk and compliance functions are supporting insurance organisations build trust

Welcome to our Insurance Risk and Compliance Benchmarking Survey – PwC’s first annual survey of Risk and Compliance executives from Australia’s leading insurers. The survey aims to give Risk and Compliance function leaders a view of how their peers structure and staff their organisations, and how they are responding to significantly heightened expectations from customers and regulators.

The first half of 2018 has seen some of the most significant questions being asked of the governance and leadership of financial institutions in Australian corporate history.

The Royal Commission has dramatically highlighted increased public expectations of the sector, and APRA’s recent report of its Prudential Inquiry into the Commonwealth Bank of Australia (CBA) is causing organisations to fundamentally reassess their risk governance, in particular how well they are managing non-financial risks.

These developments are against a backdrop of continued focus in the insurance industry on matters relating to trust; for example, the establishment of the Life Insurance Code of Practice, ASIC’s focus on add-on general insurance products, and the ACCC’s recent prioritisation of consumer issues in Private Health Insurance.

Insurers have a profound impact on society, but they currently have a significant challenge to build engagement with, and trust of, their consumer base. It is clear that the role played by risk and compliance professionals in supporting insurance companies navigate the complex external environment has never been more important.

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Key findings

There is a general acknowledgement that more should be done to further embed fundamental structures and risk management practices within insurance organisations. We see opportunities for compliance obligations to be more robustly documented, mapped to controls, and monitored through the effective use of business attestations; and for enhanced reporting to Risk Committees of information relating to non-financial risks.

Insurers are increasingly looking at how to leverage technology to drive more effective risk management and compliance monitoring, with a number of organisations still reliant on spreadsheets. Insurers are looking to engage with RegTech; however, given the change management that is required to implement such solutions, it is important to consider how the adoption of RegTech fits your organisation’s overall business and regulatory strategy.

Insurers are currently grappling with how to effectively measure culture, and how to make their culture work for them. Culture frameworks have been best adopted where organisations have implemented an enterprise-wide approach that links culture and behaviour to outcomes; with the most appropriate measures to reflect progress regularly monitored.

Contact us

Rod Balding
Partner, PwC Australia
Tel: +61 (2) 8266 1324
Email

Scott Fergusson
Partner, PwC Australia
Tel: +61 2 8266 7857
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Sarah Hofman
Partner, Risk & Regulation, PwC Australia
Tel: +61 (2) 8266 2231
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Caroline McCombe
Partner, PwC Australia
Tel: +61 2 8266 2767
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Stewart Paterson
Director, PwC Australia
Tel: +61 3 8603 1056
Email

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