Like many other media outlets, we compiled a “Risks of 2012” list that ran in our latest issue of Risk Management. Among the challenges facing companies this year, we highlighted the supply chain disruptions, retaining talent, and failing to embed risk management into strategy. Of course, those are issues for all organizations. Insurance Networking News has come up with its top ten list of insurance company trends for the coming year.
Here are their top five. Head over to their website for the others.
1. Actuaries are embracing faster and more efficient asset liability management models and analyses to help improve risk management.
2. Insurers are streamlining and enhancing core administration processes with new software solutions that use business rules to create new policy type products that get to market faster.
3. Health care payers are preparing for the uncertainties of health care reform by investing in analytical and workflow tools to help increase claims processing efficiencies.
4. Regulations are placing greater emphasis on governance, risk transparency and compliance, causing insurers to increase their investment in enterprise risk management frameworks.
5. Expected increases in regulatory reporting requirements means insurers will need to better interconnect financial data, measure contributors to performance, and generate real-time investment and accounting information.
They forgot to mention that healthcare insurance providers are making it nearly impossible to obtain coverage. Apparently, the effects of the full rollout of Obamacare are yet to be seen.
From where I sit, failure or unwillingness of organizations to properly include risk management into their business strategy is one of the major reasons for concern in 2012. Both risk and perception of risk have increased for companies, but they are not doing enough to contain it, especially while doing business abroad or in other conditions of increased exposure.