Insurer’s Regulatory and Risk Management Concerns Tick Up in 2017
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Regulatory environment metrics reflected a mix of positive and discouraging news: the number of enforcement actions dropped from 825 in the 2015 survey to 685 in the most recent 12-month period, while total dollar amounts in fines assessed dropped from
"While overall compliance concern levels rose only slightly compared to the previous Indicator scores, the ability to keep pace with the continued growing burden of regulations clearly remains a very real challenge facing insurance companies," said
Despite positive strides taken by many insurers since 2015 to better manage organizational risk, the findings showed a considerable gap in respondents' perceived focus on fundamental compliance program management elements versus actual planned investments. This disconnect was most noticeable for regulatory change management (37 percent gap), regulatory insight capabilities (36 percent gap) and risk and control assessments (30 percent gap).
"While our survey doesn't measure why risk management concerns have spiked," noted Ross, "it is very likely that the wave of high-profile media stories detailing data breaches, hacking, and other risk control failures across the financial services sector has contributed to insurers' heightened angst about their ability to manage risk."
Among risk management issues that respondents anticipate will receive escalated priority in the coming 12 months, cybersecurity ranked first, at 67 percent, followed by regulatory risk (43 percent), data governance (39 percent), IT risk (34 percent) and operational risk (30 percent). In describing their organizations' risk management efforts, 44 percent cited having an integrated, strategic enterprise risk management program in place actively used by all departments, up from 35 percent in 2015. And in a new survey question, nearly half of all respondents (45 percent) confirmed their organization's use of a centralized risk register to monitor risks.
The Indicator was conducted nationwide in
For more details on the 2017 Indicator results, please visit www.WoltersKluwerFS.com/Indicator. About Wolters Kluwer Governance, Risk & ComplianceWolters Kluwer Governance, Risk & Compliance (GRC) is a division of
Keywords for this news article include: Wolters Kluwer.
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