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Member, Beacon International Group, Ltd.
LONDONEnterprise 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.