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Insurance company chief risk officers expect larger role: Survey

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Insurance company chief risk officers expect larger role: Survey

Insurance company chief risk officers believe that their role will grow in importance, according to a report released by consultant Ernst & Young L.L.P.

“Increasing Authority and Higher Organizational Profiles: 2014 Insurer CRO Survey,” released Monday, was based on the responses of chief risk officers at more than 20 North American insurers.

“There is broad consensus among respondents that the trend toward greater responsibility, authority and presence — especially among the executive management committees and the board — will only continue,” said the survey. If the economy weakens or there is considerable turbulence, that trend will both speed up and intensify, said the consultant in the report.

“There is little doubt that the CRO role will also grow in importance, likely becoming more of a strategic advisor to the C-suite, as well as to stakeholders and decision-makers across the business,” said the survey.

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Seventy-three percent of the respondents said they had formal access to their company's board, while 27% said they did not.

The survey said “it is impossible” to overestimate the profound impacts of regulatory change. “There can be no doubt that CROs have a larger role to play — as well as more value to add — in shaping the conversation with regulators as well as helping their companies prepare for compliance with these new demands.”

Nearly one-quarter — 22% — of the respondents cited capital regulations/Common Framework for the Supervision of Internationally Active Insurance Groups, or ComFrame, from the International Association of Insurance Supervisors as the biggest implementation challenge they face. Own Risk and Solvency Assessment, or ORSA, also drew 22% of the respondents' answer to the same question.

The report is available here.