the hidden value of risk in insurance - accenture · data analytics for the risk function,...

The hidden value of risk in insurance

Accenture 2017 Global Risk Management Study Insurance Report

Enhanced skills, stronger relationships, rapid response

2 ACCENTURE 2017 GLOBAL RISK MANAGEMENT STUDY: INSURANCE REPORT

The stakes are high, with interest rates low, revenue streams under threat and new competitors entering from all sides. At the same time, insurers are encountering new obstacles—from regulatory uncertainty to reduced demand among millennials.

To survive—let alone thrive—insurers need to evolve. The scale of the evolution could be challenging, but many of the changes that are needed should add significant long-term value. For example, the availability of real-time data allows insurers to think about new products and propositions to unlock predictive and opportunistic strategies.

Insurers are also rethinking their relationships with all stakeholders, becoming a “partner” to customers, brokers and other intermediaries while establishing deeper ties in adjacent industries such as automotive, healthcare and home security.1 An openness to new technologies also demands a broader ecosystem of supply partners, including technology companies, insurtech firms, venture capitalists and digital specialists.

WAIT, OR ACT?

The insurance industry is undergoing fundamental change, with significant consequences for the risk function. Disruptive forces—from medical breakthroughs to technological innovations—are reshaping society and business, while new approaches to data, the workforce, partners and customers are changing the way insurers operate.

WWW.ACCENTURE.COM/RISKSTUDYINSURANCE 3

http://www.accenture.com/RiskStudyInsurance

Starting in 2009, Accenture has conducted research on risk management. Through the years we have witnessed the growing influence and importance of risk management and the function. Yet, there is still much work to do. Below are some of the highlights from past studies, which show how the nature of risk management within the financial services industry has changed over the last eight years.

THE EVOLUTION OF RISK MANAGEMENT


Source: Accenture Global Risk Management Studies, 2009 to 2017

ACHIEVINGBALANCE The gap between risk and finance has been closing but there is still more progress that needs to be made

Risk silosOnly 15% had an integrated IT risk infrastructure

Towards a new risk culture84% said risk capabilities help engender a risk culture in the organization

Direct line to the CEO96% of risk owners reported directly to the Chief Executive Officer (CEO), up from 82% in 2011

CRO at the executive table79% said the Chief Risk Officer (CRO) is important to strategic planning decisions

Still closing the risk-finance gap38% said finance and risk leaders work closely, but don’t input jointly to corporate strategy

HARNESSINGTECHNOLOGY Technology in risk management has evolved over the years to drive innovation and strategic decision-making

Tech not fit for purpose92% said that fragmented, inefficient IT systems are increasing the cost of risk management

Tech as newest strategic priority77% reported extensive or significant need for analytics to address risk magnitude and frequency

Systems integration still a barrierAdoption of analytics growing but 45% said systems integration still a barrier

Building analytical capabilities67% plan to increase investment in big data and analytics over the next two years

The power of automation to comeOnly 13% are realizing Robotic Process Automation’s (RPA) full potential

EVOLVING TALENT Over the years, organizations have responded to the changing demand for specialized risk skills

Risk resource in short supply 32% stated they see resources and talent as a significant challenge

Rising headcount53% planned greater headcount to enhance risk organization

Lack of specialized tech skillsRisk technologists (64%), risk business and data analysts (62%) were skills in shortest supply

Demand for data specialistsData management (34%) and data analysis (32%) were anticipated as the skills most in demand

Emerging tech capabilities69% said shortage of skills in new and emerging technologies impedes the effectiveness of their risk management function

2009 2011 2013 2015 2017


THE DANGER OF “WAIT AND SEE”With so much in flux, some leaders are tempted to put their businesses into wait-and-see mode. This amounts to holding back major change while trying to assess the impact of technology disruption, new competitors, and complex threats and complications—such as economic protectionism, ransomware, persistently low oil prices and geopolitical risk from all corners of the world.

But the problem with the wait-and-see mode is that the risk of doing nothing could be greater than the risk of taking action— even when the best course is not certain.

This is the case for insurers, and especially in 2017, because many of today’s risks are also opportunities. Companies should take steps to make sure they are not left behind as the market grows for specialty services.

Rather than watch disruption happen, insurers should be driving it. They should be investing in new technologies to offer new products and services, build efficiencies and adapt more dynamically to individual customer behaviors and preferences.

CYBER: THREAT OR OPPORTUNITY?Cyber is a prime example of how today’s threats and opportunities can overlap.

As attacks grow ever more sophisticated, insurers have multiple concerns: customer trust and the protection of personal information; compliance with evolving privacy regulations; and emerging vulnerabilities from digitalization, automation, connected devices and the expansion of ecosystems.

But for insurers, unlike other industries, cyber is an opportunity. The cyber insurance market is expected to grow to $14 billion by 2022.2 However, some have speculated that a global cyber catastrophe could cost the industry $30 billion, and the industry would need to figure out whether that kind of event would happen every 100 years or more often.3

Sixty percent of insurance respondents in our 2017 Global Risk Management Study report that cyber is having a greater impact on their organization than it did two years ago. Meanwhile, other Accenture research shows that 70 percent of insurance leaders rank cyber security as a top concern when it comes to participating in digital ecosystems.4

Like many aspects of 2017, the cyber insurance opportunity is both complex and uncertain.

THE PATH FOR RISK MANAGEMENTIn 2017, insurance companies are responding by taking a more fluid, progressive approach to risk management. Our research finds companies investing to develop their risk functions across three key areas:

1. Harnessing digital innovation

2. Balancing old and new skills

3. Integrating across the business

The following sections look at these areas in detail.



Respondents were asked: “To what extent do the following challenges impede the overall effectiveness of your risk management function?” Data shows aggregated proportions selecting “to a great extent” and “to some extent.”

CHALLENGE OVERALLLIFE INSURANCE

PROPERTY & CASUALTY INSURANCE

RE-INSURANCE

Increased velocity, variety and volume of data

75% 78% 72% 73%

Increasing demand from multiple regulators in multiple jurisdictions

73% 84% 69% 62%

Balancing the responsibilities for control and compliance with the need for effective customer service

72% 84% 61% 71%

Shortage of skills in new and emerging technologies

71% 71% 65% 80%

Legacy technologies within the risk function

70% 77% 68% 62%

Lack of budget to make necessary investments

67% 75% 63% 60%

Disruption of business models from digital technologies

66% 71% 65% 58%

Increasing demands from senior management and the board

66% 64% 65% 69%

Shortage of core risk management talent and skills

65% 70% 65% 58%

Lack of integration across existing technology infrastructure

65% 67% 64% 62%

Lack of integration with other business functions, e.g. front office, operations, finance

58% 67% 56% 49%

Lack of clear governance in decision-making processes

58% 64% 54% 53%

Source: Accenture 2017 Global Risk Management Study

TOP CHALLENGES BY INSURANCE TYPE


Accenture’s 2017 Technology Vision research found that 87 percent of insurance executives believe we have entered an era of technology advancement no longer marked by linear progression, but by an exponential rate of change. A similarly large proportion (86 percent) think their organization must innovate at an increasingly rapid pace just to keep a competitive advantage.5

HARNESSING DIGITAL INNOVATION

Innovation is everywhere in insurance. Advances in data analytics are helping insurers better understand risk, build stronger predictive models and tailor customer relationships to suit personal preferences and risk attitudes.6 At the same time, robot brokers are on the rise,7 new platforms are providing micro-pooling “social insurance” models,8 and sensors allow insured cargo to report every bump, scrape and drop it endures in transit.9 Some of the most transformative technologies, meanwhile, are being implemented deep in the back offices of the world’s leading insurers.

FAST-MOVING CLOUDThe cloud is an established example. Our 2017 Global Risk Management Study finds that cloud technology is virtually ubiquitous—91 percent of insurers are using it—but just 26 percent are highly proficient in using cloud within their organization, 36 percent are not using it to its full potential, and 29 percent are only just introducing it (see Figure 5).

The biggest areas of opportunity for cloud technology are greater efficiency or productivity (35 percent) and improved regulatory data management (31 percent). But cloud is bigger than any one application. It underpins all the digitalization and technological innovation insurers need to meet future customer needs and business objectives. As Accenture has noted, “without cloud’s capacity and firepower, digital simply does not happen.”10



Cloud is also crucial for cost control. Most insurance respondents to the 2017 study (88 percent) say that cost pressures are having an impact, sometimes leading to sub-optimal outcomes. Despite this, 73 percent say that investment is being made available for the right projects: those that improve cost efficiency and grow the top line (see Figure 1). Many of these projects involve new technologies.

The most common response to cost pressures, cited by half of all respondents (51 percent), was improving efficiency through smart technologies.11 Cloud is the top choice in this regard, with 77 percent indicating their risk function uses it to address cost pressures (see Figure 2).



Figure 1: How would you characterize the cost environment for risk management at the present time? (Base: 190 – insurance)

Figure 2: To what extent are the following technologies enabling your risk function to address the cost pressures that you are facing? (Base: 190 – insurance)

20%

7%

We are under some pressure—but investment is being madeavailable for the right projects

We are not under muchpressure—the business isincreasing investment

We are under intense pressure—and being asked constantlyto do more with less

73%

44%

46%

52%

47%

46%

38%

Cloud

Big data and analytics

Collaboration and workflowtools (e.g. IBM® OpenPages®)

Artificial intelligence

Machine learning

Robotic process automation

To a great extent To some extent Hardly at all Not at all

33%

31% 19%

20% 24%

18% 25% 10%

4%

4%

16% 29% 9%

15% 29% 18%

18% 5%


DATA ANALYTICSFor the risk function, cloud-based data and software as a service support another fundamental of the digital age: data analytics.

Our 2011 Global Risk Management Study showed an unmet need for analytics: 83 percent said their organization had an extensive or significant need for risk magnitude and frequency capabilities. At the time, we found low implementation levels, with just 19 percent having consistent and updated data available to decision-makers across the organization on an ongoing basis.

This year, we find a much more mature capability, which shows how important analytics has become. In 2017, 66 percent of respondents report that the use of risk analytics is fully integrated into the risk function’s everyday operations, while 63 percent agree that it is integrated with strategic planning and decision-making (see Figure 3).

For all its rewards, however, big data is a major challenge to implement. Indeed, the increased velocity, variety and volume of data has become the top challenge impeding effectiveness of organizations’ risk management functions (cited by 75 percent of respondents—see Figure 4).

Firms have made significant improvements in data analytics, setting up centralized processes to capture data and report an enterprise-wide view of risks for committees and reports. But the process is often still manually intensive and not supported by a common database that can collect all risk types.

This inevitably means that risk teams cannot achieve everything they would want to and instead have to focus on the most important risks. Just 19 percent strongly agree that risk analytics is applied consistently across their organization and can address all relevant risks and exposures (see Figure 3).


Figure 3: Thinking about your institution's use of risk analytics, to what extent do you agree or disagree with the following statements? (Base: 190 – insurance)

1%

The use of risk analytics is fullyintegrated into the risk function’severyday operations

Risk analytics is integrated withstrategic planning and strategicdecision-making

Risk analytics is applied consistently across the organization and can address all relevant risks and exposures

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

25%

1%5% 5%

41%

28%

20% 19%

43%43%

22% 30%

7%10%



One of the main challenges is legacy technologies: 70 percent say these old systems impede the effectiveness of the risk function, while 65 percent report the same from a lack of integration across existing technology infrastructure (see Figure 4). These problems make an already complex data challenge even more intricate, time-consuming and error-prone.

However, over the next few years, as more legacy systems migrate to the cloud, risk analytics is expected to continue to strengthen and transform the risk function.


Figure 4: To what extent do the following challenges impede the overall effectiveness of your risk management function? (Base: 190 – insurance)

Shortage of skills in new and emerging technologies

30% 41% 8%18%

Lack of integration with other business functions 27% 31% 10%29%

To a great extent To some extent To a minimal extent No impact Don’t know

Increased velocity, varietyand volume of data 32% 43% 7%15%

Lack of clear governance indecision-making processes 17% 41% 13%26%

Increasing demand from multipleregulators in multiple jurisdictions 24% 49% 6%18%

Balancing the responsibilitiesfor control and compliance 24% 48% 6%18%

Legacy technologies withinthe risk function 23% 47% 7%19%

Increasing demands from seniormanagement and the board 21% 45% 8%23%

Disruption of business modelsfrom digital technologies 27% 39% 13%19%

Shortage of core risk management talent and skills 23% 42% 8%25%

Lack of budget to makenecessary investments 30% 36% 13%19%

Lack of integration acrossexisting technology infrastructure 29% 36% 10%23%


AUTOMATION AND INTELLIGENT MACHINESArtificial intelligence (AI), RPA, and machine learning build on and intersect with the advances risk functions have made through cloud and analytics.

These are areas of important potential. At this stage, few risk teams have fully exploited these technologies, but many have now begun to explore them. For instance, just 15 percent of insurance respondents to the 2017 study claim to have highly proficient capabilities in RPA, while another 24 percent are using it in the risk function but are not extracting its full potential. AI has similar figures: 13 percent and 32 percent respectively (see Figure 5).

At the moment, the greatest perceived opportunity for RPA is to improve efficiency and productivity. Nearly one-third (32 percent) of respondents tell us that RPA is being used to replace high-volume, low-value-added tasks, resulting in cost efficiencies, improved delivery and increased consistency.

Robotics (and other forms of automation) and AI (including machine learning and other disciplines) overlap depending on the application. And the list of its applications is expanding rapidly: reviewing disclosures, scanning transactions, assessing incident reports, picking up anomalies in employee activity, predicting changes to risk exposures, and rapidly checking data quality. There are more possibilities to explore than the time and resources with which to do so.12

Figure 5: Thinking about the range of technologies that you use to support your risk management function, how advanced is your institution’s use of the following technologies? (Base: 190 – insurance)


Cloud

Big data and analytics

Collaboration andworkflow tools

Machine learning

Robotic process automation

Artificial intelligence

We are highly proficientin using this technology

We use the technologyfor our risk functionbut we’re not extractingfull potential

Starting to useto some extent

Not using it butsee the potential

Not using it and do not see the potential

26% 36% 6%29%

19% 41% 10%26%

17% 38% 7%35%

16% 27% 19%33%

15% 24% 9%20%32%

13% 32% 20%32%



BALANCING OLD SKILLS AND NEW While technological change has become the norm, some of the biggest innovations we expect over the coming years are likely to be in the redesign of technologies to complement and enhance human potential.13 This should put humans—customers, business partners and alliances, and employees—at the center.

New tools and processes change how risk teams interact with the business, alliances, regulators, customers and other external stakeholders, and call for new skills and a better balance of attributes across teams. Beyond quantitative skills, the risk management function should bring value to the company by providing economic insights, generating new ideas and building strong relationships throughout the organization.

To support these goals, some insurers are bringing staff into the risk function from other areas of the business to enhance credibility and facilitate relationships. Others are hiring from diverse disciplines, including economics, the law and engineering.

Some have made deliberate attempts to blend old and new by, for example, creating centers of analytics excellence that team up senior actuaries and risk leaders with a new generation of tech-savvy protégés. Statistical, analytical and modeling skills are not valued any less; they remain fundamental. But with risk management having to become more integrated, and technologies automating many labor-intensive tasks, the function has to redefine the balance of skills that is needed across risk teams.

This balance is crucial, because there are so few professionals who possess every skill the risk function needs. From general quantitative competencies to technology acumen, industry knowledge, niche risk specialties, communication skills, creativity and management experience, candidates with the whole package are extremely rare. CROs need to build teams that comprise every skill, and lead their members to work as one.


EMERGING SKILLS ISSUESIn 2009, at the time of the first Accenture Global Risk Management Study, financial market instability was the change in the business environment most likely to increase risk. At that point, just 7 percent of respondents across all financial services thought technological change could cause a maximum increase in risk faced by the organization.14 Today, in a pattern that began in 2015, understanding emerging technology risks including cyber is the main priority (46 percent) for strengthening risk management capabilities over the next year (see Figure 6).

A great deal has been achieved in this area in recent years. Three out of four insurers we spoke to in our 2017 study (75 percent) say their risk management workforce capabilities are effective or very effective at understanding emerging technology risks. A majority (68 percent) agree that they have a cyber risk management function that can effectively support the IT function and accurately report the real status of cyber risk to the board.

Figure 6: What are the priority risk management capabilities your institution plans to strengthen over the next year? (Base: 190 – insurance)


Understanding of emergingtechnology risks, e.g. cyber 46%

40%Data management

37%

Advanced mathematical andstatistical knowledge (e.g. enhancing quantitative capabilities, actuaries and data scientists)

Understanding of key trends in our sector (e.g. shift to digitalbusiness models)

35%

Managing reputational riskassociated with social media 35%

Broader commercial awareness 28%


Insurers have clearly been building their cyber risk teams, but there is still a shortage of talent in this and other specialist areas. In fact, over the past few years the demand for the right risk skills has intensified.

In 2013, 39 percent of surveyed respondents said they had insufficient talent in the risk function and that this impeded the overall effectiveness of the organization’s risk management function.15 By 2015, this figure had jumped to 63 percent.16 This year, we separated core risk management skills from skills needed for new and emerging technologies, and found that 65 percent and 71 percent, respectively, agree that skills shortages impede the function (see Figure 4).

Skills will continue to be a challenge, but it is encouraging to be able to report strong progress in key areas such as data analytics and cyber since we started this research. It is clear that the risk teams of the future will need to be more diverse and more connected to the frontline of the business. And that diversity of skills and experience will need careful and skillful management to build a risk-driven business.



INTEGRATING ACROSS THE BUSINESSLarge insurers operate across multiple jurisdictions and have risk teams spread across several locations. On top of regional differences, specialized risk types and a variety of business units can create further silo problems for risk functions.

Outsourcing is yet another potential complication, and it is set to increase over the coming two years, with 58 percent of 2017 study respondents expecting to increase outsourcing of risk reporting and the same percentage increasing the outsourcing of technology implementation and maintenance.

In many cases, total centralization of risk management and coordination is impossible and total decentralization is impractical, so risk functions strive to get the best of both worlds. At the moment, 54 percent of respondents say there is limited coordination between risk management activities at the local level and the group level (see Figure 7).

Centralization is desirable because it offers an immediate aggregate picture for analysis. Central frameworks and tools provide a standardized and coordinated response to regulation, a consistent set of rules for managing all risks and the capability to perform complex and high-value calculations to measure risk exposure, liquidity and solvency.

Decentralization is valuable because local or specialized teams can focus on local regulatory requirements and market-specific topics. Half (52 percent) of insurance respondents say that organization-wide risk processes do not capture the nuances of local markets, while 65 percent say local markets struggle to balance the management of risk at the local level with organization-wide risk priorities.


Figure 7: Thinking of your risk management function, to what extent do you agree or disagree with the following statements? (Base: 190 – insurance) Due to rounding figures may not total to 100%.


Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

Organization-wide risk processes do not capture the nuances of local markets

18% 33% 15%31%

There is duplication of e�ortin risk management activitiesacross lines of business

13% 40% 13% 7%27%

There is limited coordinationbetween risk managementactivities at the local level andthe group level

13% 41% 16%27%

Local markets struggle tobalance the management ofrisk at the local level withorganization-wide risk priorities

16% 48% 9%26%

MANY DATA SETS ARE BEST CENTRALIZEDNo matter to what extent coordination is centralized, risk leaders should strive to create a common data platform that provides a “single version of the truth.” Without this, turf wars can ensue over which data has priority and aggregation is a constant drag on efficiency. This impedes integration, and prevents the use of common data building blocks to improve risk outcomes.

So, how are risk functions currently balancing centralization and decentralization? And how well are they integrated with other parts of the business?

Overall, where it is possible, there is a trend towards greater centralization of risk management at group level.

There are some modest differences between how this coordination is handled by risk type and by lines of business.

One-quarter (25 percent) of 2017 respondents have centralized coordination of risk management activities across all risk types (see Figure 8), whereas only 15 percent have done so for all business lines (see Figure 9). It is not surprising, then, to learn that more than half (53 percent) say there is duplication of effort in risk management across lines of business (see Figure 7).

This does, however, seem to be changing. In two years’ time, respondents expect to be further centralized, with around a third expecting coordination to be centralized both for all risk types (36 percent) and all business lines (33 percent). See Figures 8 and 9.



Figure 8: Using scores between 1 and 5, please indicate how risk management activities are currently coordinated across risk type (e.g. market risk, credit risk, liquidity risk), and how you expect them to be coordinated in two years’ time. (Base: 190 – insurance)


Figure 9: Using scores between 1 and 5, please indicate how risk management activities are currently coordinated across specific lines of business (e.g. life insurance and property and casualty insurance), and how you expect them to be coordinated across specific lines of business in two years’ time. (Base: 190 – insurance)


5 – Fully centralized: risk management operates at a group level

4

3 – Centralized & decentralized: risk management operates equally at both a group and regional level

2

1 – Fully decentralized:risk management operates at a regional level

Now Two years’ time

15%

18%

10%

11%

15%

17%

15%

18%

47%

34%

5 – Fully centralized: risk management operates at a group level

4

3 – Centralized & decentralized:risk management operates equally at both a group and regional level

2

1 – Fully decentralized:risk management operates at a regional level


9%

16%

16%

16%

6%

29%

15%

17%

40%

36%


RISK AND FINANCE ARE NOT INTEGRATING FAST ENOUGHIntegration is also important between core business functions. In 2013, a lack of integration with other business functions was a challenge that impeded the effectiveness of the risk function for 47 percent of insurance respondents.17 Four years later, this figure has risen to 58 percent.

One of the key areas where integration is suggested is between finance and risk. Here, again, our historical data is revealing. Back in 2011, 90 percent of Global Risk Study respondents were planning better integration of risk and finance processes to enhance the risk organization.18 However, by 2015, only 9 percent said that finance and risk leaders have a close working relationship that includes joint input into corporate strategy and enterprise risk management (ERM) steering.19

In 2017, this figure has only risen to 13 percent, with 23 percent expected two years from now (see Figure 10). This is slow progress. Sometimes, this is because companies operate risk as part of the finance area, which limits the direct involvement of risk professionals in top management decision-making.

Risk functions that report directly to the CEO often enjoy an equal footing with finance, but have a different collaboration challenge. For them, the challenge is the systematic integration with finance; this way, the two functions can support each other and resolve conflicting views productively.

It comes down to leadership. Risk leaders with the right focus and discipline are expected to have enough strategic influence to integrate risk across the business, coordinate activities, and invest wisely in the overall development of the function.

Figure 10: Please indicate how your risk function currently performs in regard to finance and risk integration, using scores between 1 and 5. (Base: 190 – insurance)


5 – Finance and risk leaders may at times be in opposition on some issues,but have a close working relationship,and both provide input into corporatestrategy and ERM steering

4

3 – Finance and risk leaders have a close working relationship, but do not jointly provide input into the corporatestrategy and ERM steering

2

1 – Finance and risk leaders do notjointly provide input into corporatestrategy and ERM steering


13%

23%

9%

15%

7%

14%

16%

39%

32%

32%



SIX SIMPLE BUT POWERFUL ACTIONS TO TAKE NOW

There can scarcely have been a more exciting time to be in the insurance industry, and in the risk function in particular. But in this world of opportunities, complexities and uncertainties, what simple but powerful actions are available for CROs and their teams in the near term? We have identified six actions for all risk leaders to consider taking.

Work to give risk professionals the time and freedom to achieve more, by automating drudgery and strongly defending the right initiatives. The function should continually challenge the company, and risk leaders should continually challenge the risk practice itself.

Create and continually develop a dedicated emerging-risk working group that can identify and evaluate the nature of emerging risks and their potential impacts.

Introduce confident generalists, experienced divisional leaders, and specialists from other fields into the risk function to create a more blended interdisciplinary team. Greater diversity—particularly of gender, age and nationality—can also add valuable new perspectives and strengthen the team.

1. ACTIVELY LEVERAGE INTERNAL KNOWLEDGE

2. BUILD A POWERFUL RISK RADAR

3. MIX UP THE TEAM


Finally, risk should set an example for the rest of the firm by taking cool-headed actions despite swirling uncertainty and frequent surprises. Whether it is a case of being more proactive about hedging equities or just carrying out more experiments to test impacts on the risk profile, the risk function should be active, bold and unafraid to innovate. Doing nothing can create the biggest risk of all.

Whether risk is officially part of finance or any other department, risk leaders need a channel through which they can routinely engage directly with the CEO and other members of the C-suite as necessary. This allows risk to have suitable influence, builds trust and facilitates integration with the business.

Increase the rigor of operational risk management and create a more effective and impactful operational risk committee that includes IT, compliance, legal, audit and vendor members.

Position risk as a trusted partner and get the function involved in decision-making instead of just being informed afterwards. Drive and campaign for better links between the company’s risk appetite and the risks managed by the function, and provide an overall risk perspective.

4. REPORT TO THE TOP

5. BOOST RISK PROCESSES

6. GET CLOSER TO THE BUSINESS



REFERENCES1. “Technology Vision for Insurance 2017,” Accenture, 2017. Access at: https://www.accenture.com/us-en/insight-highlights-path-partnership-tech-vision-2017

2. “Cyber Insurance Market to Top $14 Billion by 2022: Report,” Security Week, December 9, 2016. Access at: http://www.securityweek.com/cyber-insurance-market-top-14-billion-2022-report

3. “Cyber crime fears drive up demand for anti-hacker insurance,” Information Management, May 11. 2017. Access at: https://www.information-management.com/news/cyber-crime-fears-drive-up-demand-for-anti-hacker-insurance

4. “Technology Vision for Insurance 2017,” Accenture, 2017. Access at: https://www.accenture.com/us-en/insight-highlights-path-partnership-tech-vision-2017

5. Ibid

6. “How big data analytics is impacting the insurance sector,” CMO, October 20, 2015. Access at: https://www.cmo.com.au/article/587084/how-big-data-analytics-impacting-insurance-sector/

7. “First Robot-Run Insurance Agency Opens for Business,” Insurance Journal, April 1, 2016. Access at: http://www.insurancejournal.com/news/national/2016/04/01/403804.htm

8. “Friends-based insurance,” Financial Times, June 28, 2016. Access at: https://www.ft.com/content/6755beb8-320c-11e6-bda0-04585c31b153

9. “Did Your Package Get Dumped in Transit? Via Cloud, It Tells You,” Bloomberg Technology, May 18, 2017. Access at: https://www.bloomberg.com/news/articles/2017-05-18/intel-teams-with-honeywell-to-offer-cloud-based-freight-tracking

10. “Eighty percent reduction in insurance carrier costs? Cloud as rainmaker,” Accenture, 2016. Access at: https://www.accenture.com/ca-en/insight-cloud-insurance-rainmaker

11. This was particularly the case for respondents from property and casualty (P&C) insurers (57 percent); compare this with life insurers at 44 percent.

12. “Robotics: The Next Frontier for Automation in Finance and Risk Management,” Forbes, April 20, 2016. Access at: https://www.forbes.com/sites/steveculp/2016/04/20/robotics-the-next-frontier-for-automation-in-finance-and-risk-management/#31d26cf9380d

13. “Technology Vision for Insurance 2017,” Accenture, 2017. Access at: https://www.accenture.com/us-en/insight-insurance-technology-vision-2017

14. “Managing Risk for High Performance in Extraordinary Times - Report on the Accenture 2009 Global Risk Management Study,” Accenture, 2009.

15. “Risk Management for an era of Greater Uncertainty - Report on the Accenture 2013 Global Risk Management Study,” Accenture 2013. Access at: https://www.erai.com/CustomUploads/ca/wp/2013_11%20Accenture-Global-Risk-Management-Study-2013.pdf

16. “Paths to Prosperity – Report on the Accenture 2015 Global Risk Management Study,” Accenture, 2015

17. “Risk Management for an era of Greater Uncertainty – Report on the Accenture 2013 Global Risk Management Study,” Accenture, 2013. Access at: https://www.erai.com/CustomUploads/ca/wp/2013_11%20Accenture-Global-Risk-Management-Study-2013.pdf

18. “Risk Management as a Source of Competitive Advantage and High Performance – Report on the Accenture 2011 Global Risk Management Study,” Accenture, 2011. Access at: https://www.rims.org/resources/ERM/Documents/Accenture_Global_Report%202011.pdf

19. “Paths to Prosperity – Report on the Accenture 2015 Global Risk Management Study,” Accenture 2015.


https://www.accenture.com/us-en/insight-highlights-path-partnership-tech-vision-2017



http://www.securityweek.com/cyber-insurance-market-top-14-billion-2022-report

http://www.securityweek.com/cyber-insurance-market-top-14-billion-2022-report

https://www.information-management.com/news/cyber-crime-fears-drive-up-demand-for-anti-hacker-insurance






https://www.cmo.com.au/article/587084/how-big-data-analytics-impacting-insurance-sector/

https://www.cmo.com.au/article/587084/how-big-data-analytics-impacting-insurance-sector/

http://www.insurancejournal.com/news/national/2016/04/01/403804.htm

http://www.insurancejournal.com/news/national/2016/04/01/403804.htm

https://www.ft.com/content/6755beb8-320c-11e6-bda0-04585c31b153



https://www.bloomberg.com/news/articles/2017-05-18/intel-teams-with-honeywell-to-offer-cloud-based-freight-tracking



https://www.accenture.com/ca-en/insight-cloud-insurance-rainmaker

https://www.accenture.com/ca-en/insight-cloud-insurance-rainmaker

https://www.forbes.com/forbes/welcome/?toURL=https://www.forbes.com/sites/steveculp/2016/04/20/robotics-the-next-frontier-for-automation-in-finance-and-risk-management/&refURL=&referrer=#31d26cf9380d




https://www.accenture.com/us-en/insight-insurance-technology-vision-2017



https://www.erai.com/CustomUploads/ca/wp/2013_11%20Accenture-Global-Risk-Management-Study-2013.pdf






https://www.rims.org/resources/ERM/Documents/Accenture_Global_Report%202011.pdf



Copyright © 2017 Accenture All rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

ABOUT THE RESEARCHThe Accenture 2017 Global Risk Management Study is the fifth edition of our study first published in 2009. It is based on a telephone survey (computer-assisted telephone interviewing, CATI) conducted by Longitude Research on behalf of Accenture between January 2017 and February 2017 among 475 senior risk management executives.

This sector-specific insurance report presents the perspectives of 190 insurance industry executives from the life, property and casualty and reinsurance sectors, and includes insights from in-depth qualitative interviews with senior banking executives.

For more information on the study, visit www.accenture.com/RiskStudy2017

STAY CONNECTEDAccenture Finance and Risk www.accenture.com/financeandrisk

Finance and Risk Blog financeandriskblog.accenture.com/

Connect With Us www.linkedin.com/showcase/16183502/

Follow Us @AccentureFSRisk www.twitter.com/AccentureFSRisk

ABOUT ACCENTUREAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 411,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Its home page is www.accenture.com

DISCLAIMERThis document is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this document and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals.

172752

http://www.accenture.com/RiskStudy2017

http://www.accenture.com/financeandrisk

http://financeandriskblog.accenture.com/

https://www.linkedin.com/showcase/16183502/

https://twitter.com/AccentureFSRisk