Insurance - Ernst & Young - Korea

How do you manage through the recession and position your company for growth? Our insurance representatives and other sector leaders conducted over 1500 client meetings and identified some overarching themes. Sound risk management strategies, an extended market reach and improved business model could mean the difference between surviving and thriving.

The IASB’s debate continues over selecting a measurement approach for insurance contracts. Should the Board opt for the updated IAS 37 model rather than the current fulfillment model, the conflict with the FASB’s approach would result in the recommendation for inclusion of both bases in the Exposure Draft. Our insurance accounting alert (pdf, 95.5kb)  summarises the agenda paper.

Global financial market events have created unprecedented challenges for the insurance industry. Risks are inherent in every forward-looking business decision and therefore, successful risk management should be an integral part of an organization’s strategy and operations. The economic downturn has taught us that the most important risks are the ones we did not see or anticipate. Read the top 10 risks most likely to affect the insurance sector during 2009 .

Peter Porrino and Robert Stein talk to A.M. Best about the state of the insurance industry in light of the financial crisis.

The administration’s June 18, 2009 white paper outlines financial services regulatory reform and will have an impact on the insurance industry. Given the magnitude of the reforms, insurers need to be aware of the implications that the evolving regulations will have for their business.

The adoption of the Solvency II framework directive by the European Union’s Economic and Financial Affairs Council on 5 May brings the proposed economic, risk-based capital regulatory regime one step closer to reality. Significant challenges lie ahead for insurers in developing the proper framework to support their businesses within the implementation timeline. In this paper, we examine the importance of Pillar 2 and its implications (pdf, 148.8kb).

In a continually evolving economic climate, there is a greater need for insurance companies to work strategically to achieve their growth objectives. Ernst & Young discusses the key issues facing the insurance industry this year in these reports

• Europe (pdf, 136kb)
• Far East (pdf, 118kb)
• UK life and pensions (pdf, 2.4 mb)
• US life (pdf, 136kb)
• US property/casualty (pdf, 100kb)

In an unprecedented economic slowdown, insurance companies are under pressure to re-evaluate their strategies and capitalize on opportunities. Management is being called upon to protect the organization’s assets and capital base, safeguard ratings and mitigate exposure to loss. This article shares our thoughts on current market conditions, business implications and steps that insurance companies should be taking in the foreseeable future.