ERM developing in European insurance: Report

LONDON—Enterprise risk management is still in its infancy in the European insurance market, but is developing, according to a report by the London arm of New York-based Standard & Poor's Corp.

S&P said that of 70 insurers it rates in Europe, 86% have adequate ERM programs, compared with 81% of global insurers.

S&P classified ERM programs at 8% of European insurers as "strong," compared with 11% globally.

S&P said that 4% of European insurers it studied had "excellent" ERM programs, compared with 5% globally, while 2% of European insurers had ERM programs the rating agency identified as "weak," compared with 3% globally.

"We're seeing greater interest by insurers in establishing ERM systems, not only to meet regulatory requirements but also to their competitive advantage," said Keith Bevan, an S&P credit analyst, in a statement.

"A number of companies are starting to invest substantially in various aspects of ERM," he said.