BusinessCompany NewsInsurers face shake-up over risk systems

Insurers face shake-up over risk systems

Insurers lack sufficiently advanced systems to assess how much capital is needed to cover the complex risks and exposure facing the European insurance industry, warns KPMG.

There is a pressing need for reform of insurance regulation, as well as enhanced use of modern risk management techniques by insurance companies, according to a report prepared by KPMG, for the European Commission on the solvency system within the European insurance industry.

The report is the first to be published as part of the European Commissions review of solvency requirements for insurance undertaking in the EU.

Gerd Geib, chairman of KPMG’s global insurance practice and co-author of the report, said: ‘The golden rule for insurers is always to expect the unexpected. No on could have predicted a tragedy on the scale of the WTC disaster, but these are the eventualities that insurers have to allow for.

‘However we found that many insurers do not have systems to quantify all types of financial risks they ar facing, that their risk management systems ? with some exceptions ? have not evolved in line with advances made by the banking sector.’

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

12m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor