'Courage' needed to face new realities
New approaches to risk management are possible
Insurers have been told they need to be courageous if they want to drive the necessary change to meet the new demands they face.
Leading international specialist commercial insurer and reinsurer, IGI, has published a white paper which addresses the need for the market to redefine the way in which it approaches risk management and deals with need for the adaptation of internal structures and strategies.
“Implementing change in an insurance company is no easy task, and it takes courage,” said the company. “We knew we had to modernise our systems in order to keep up with our clients’ needs and future-proof our business.”
The white paper, “Transcending the Normal: A new model for risk management”, acknowledges that while the need for internal change is self-evident it is not simple and highlights that it has taken a number of years for IGI to create a new approach to risk and capital management. However, that new approach is delivering significant benefits for the company by “using cutting-edge technology and clever analytics to address the shortcomings in risk and capital modelling capabilities that often holds back our industry”.
IGI said it believes that technology can drive the successful underwriters of the future, but firms need to be bold and forward thinking.
“Much of the older, clunkier software is not designed to cope with the volumes and complexities of today’s insurance business, and processes,” it stated. “At some point, it becomes too risky to not invest in new technology.
“While it is easy to put such large and complex IT projects on hold, IGI is executing a very modern, forward-thinking plan, regardless of market conditions. Future-proofing your business makes sense but thinking differently about risk is a gamechanger. “