Enterprise Risk Management for the Insurance Industry

ERM: A Framework for Value Creation

As a result of the financial crisis and growing regulatory pressures, more companies are using enterprise risk management (ERM) to manage risk for competitive advantage. Companies that rely on traditional silo-based risk management methods will find it difficult to thrive in today's volatile and complex environment or to compete against companies that are already taking a more aggressive approach to risk.

An ERM program that is integrated with the business at all levels can help insurers understand, quantify and more effectively manage the totality of their risks. Step one aligns the organization's risk strategy and appetite with the overall corporate strategy and sources of competitive advantage. The process continues with the incorporation of risk monitoring and control as an integral component of the operating model.

Finally, risk needs to be reflected in key performance metrics, targets and performance management. If implemented properly, ERM can help companies weather uncertain times while improving profitability and shareholder value.

Why Partner With Towers Watson?

At Towers Watson, we help our clients implement enterprise risk management and use it to make important strategic decisions. We're a leading provider of risk management services and have specialized expertise in the insurance industry.

Towers Watson has more actuaries serving the insurance industry than any other professional services firm, and we consult to more than 75% of the world's leading insurers. In addition, we are a leading expert on economic capital (EC), with extensive experience around the globe assisting clients with EC design and implementation.

Towers Watson is also a global leader in risk technology for the insurance industry and the world's largest actuarial software provider. We have 25 years of experience in the software business. And our reinsurance brokerage business is the world's fourth largest. This broad base of services, coupled with our insurance industry expertise, allows us to offer clients an integrated approach to risk management and risk transfer.

For information on how to strengthen ERM at your organization, please contact us.