Financial & Risk Analysis

Finance, risk and capital are now inextricably linked for insurance businesses. The formal link between the total risks within the business and capital requirements has increased the need to develop a robust information infrastructure to enable the identification, management and measurement of risk. Having invested significantly in implementing the new regime, we believe there is now value in reconsidering the issue to further embed it into the business and extract enhanced business benefit.

Working closely with our actuarial colleagues, our management consultants can help to improve the linkages between capital, risk, information, operations and IT to identify and implement improvements in the tools needed to manage the businesses effectively.

Risk Management 

The risk infrastructure across the industry has undergone a radical overhaul to implement the Integrated Prudential Sourcebook but we believe there is generally still some way to go for this to be fully integrated into the business so that additional benefits can be achieved. A particular challenge is identifying, managing and measuring operational risk. We have experience of considering the impact of risks and risk management on Internal Capital Assessments and in understanding what is required within an overall risk framework.

Management Information 

Effective Management Information has long been a hot topic across the industry, but the need for good quality and timely information is now more important than ever. A key challenge is to demonstrate the reliability and efficacy of the information used to manage the business, ensuring it adequately supports decision-making and the assessment of risk. Working together with our actuaries, we can help to define and implement an appropriate Management Information infrastructure.

Expense analysis and control 

As margins become tighter and competitive pressures increase, a detailed understanding of expenses and the drivers of cost is increasingly important as it is only possible to control the things that can be measured effectively. We can help to establish and assess the expense profile of the business to provide a framework for control or reduction.