Risk is inherent to insurance–that's certainly the nature of the business–but carriers are paying ever greater attention to how best to manage that risk. For IT leaders, this goes beyond just helping business users manage exposures and underwriting. Internal risk can be fatal for a carrier–inefficient systems and processes and a lack of quality data are as dangerous for a company as any Category 3 hurricane.
The term enterprise risk management itself creates risk for insurers because of the wide range of risks insurers face daily. Virtually every task performed by an insurer carries some element of risk. This means companies have to attack problems–the risk to underwriting integrity from faulty data, the risk to the claims department from fraud, the risk to internal systems from faulty software, the risk to customer information from cyber attacks–from different angles, and in this new environment, insurers must ascertain how these risks affect the company from a compliance perspective. Life would be simple if risk management could be addressed through one-stop shopping, but carriers and analysts find their individual risks need to be addressed in a targeted manner.
The View From Inside
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