Enterprise Risk Management: Asia-Pacific Insurers' ERM Lags The More Developed Markets; Australia And Japan Lead In Sophistication Apr 12
- Language: English
- Published: April 2012
- Region: Australia, Japan
Standard & Poor's Ratings Services introduced enterprise risk management (ERM) as one of the eight main categories of its analysis of insurers in October 2005. Prior to that, however, risk management had always been the focus of the analysis, although in a less explicit form. This is because risk is at the heart of what insurers do and what Standard & Poor's assesses in its credit ratings. For most insurers, ERM resulted in a reorganization of pre-existing analysis rather than the introduction of many new requirements. Since the introduction, ERM evaluation has provided a more disciplined tool to understand how the insurer manages its risks as part of the rating rationale. ERM is substantially aligned with Solvency II in Europe...
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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.