Nearly two-thirds of insurers and reinsurers have instituted an "adequate" enterprise risk management (ERM) program providing a measure of their solvency, a rating firm study has found.
According to a new research report from Standard & Poor's in New York, 62 percent of 78 carriers the firm surveyed have the adequate rating, while 24 percent of the companies have a "strong" ERM plan.
ERM is described by S&P as a "subjective view of an insurer's or reinsurer's risk management practices, focusing on how its loss tolerance is defined and measured and on the processes it undertakes to ensure that this tolerance is not exceeded."
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