Enterprise Risk Management (ERM) is at a crossroads where financial market events, economic conditions, catastrophes, globalization, and regulatory convergence elevate the need for insurance company management to capitalize on new technology available to make informed business decisions. In recent years, rating agencies identified these important issues and raised expectations about the role of traditional risk management and ERM.

Insurers are facing multiple challenges and complex issues including increased pricing, competition, vacillating financial markets, and looming catastrophe exposures. Now more than ever, there is an appreciation and public validation about the value of ERM. This topic is an ongoing central focus of conferences, research efforts, and news articles. Moreover, evidence shows that company executives highlight ERM as a key priority. 

Aon Benfield remains at the forefront of this evolution to help clients develop the frameworks necessary to ensure that you maximize new technology to support business development and articulate objectives. Our team assists clients in many stages of your ERM efforts, including:

• Understanding a rating agency’s ERM criteria and approach 
• Conducting an ERM Needs Assessment to evaluate an insurer’s current
  risk management processes relative to rating agency expectations and industry best practices
• Preparing for ERM discussions with rating agencies
• Developing an Economic Capital Model (ECM) using ReMetrica®, Aon Benfield’s award-winning dynamic financial analysis software
• Evaluating a company’s ECM
• Integrating financial modeling with an insurer’s business planning processes
• Assisting with the implementation of ERM frameworks, including:
• Board-level risk management policy statements
• Risk identification
• Prioritization of top risks
• Establishing risk tolerance limits
• Integrating financial modeling metrics into company scorecards and executive dashboards

Aon Benfield’s ERM team is committed to helping insurers maximize the benefit of new risk management tools and best practices given their unique circumstances. There are no “one-size-fits-all” approaches to ERM. As a result, every assignment is customized to the objectives and culture of our clients. In fact, many clients begin by addressing a narrow concern and subsequently build upon that success to develop ERM processes suited to their specific needs.