Moore Stephens Says Insurance Industry Must Embrace Business Intelligence

Wednesday, July 10, 2002
Regulatory developments mean that failure to make proper use of business intelligence systems and actuarial consultancy to assess risk could lead not only to significant financial losses but also to disciplinary penalties for insurance underwriters and brokers, according to leading accountant and consultant Moore Stephens. John Harbor, head of the Moore Stephens Insurance Industry Group, says, "Professional risk analysis and modern data management techniques are designed to support the development of effective reserving and forecasting procedures. They are now an essential part of insurance industry practice. Today it is possible, using the latest On-Line Analytical Processing (OLAP) techniques together with dynamic forecasting modelling, to build customized data warehouses, which can be updated on a daily basis and used as a vital component in business intelligence and risk management techniques." Moore Stephens recently set up a dedicated business intelligence unit, headed by Steve Downing and Paul Latarche, who both have a background in IT solutions for the insurance market, to complement the firm's existing analytical and risk management services. Steve Downing says, "The insurance industry must embrace a centralized approach to risk management, one which has the ability to analyse data in a flexible way, to search for trends and patterns, to analyse productivity and to help business planning and forecasting. And it has to be accessible to all of an organization's key decision-makers." The insurance industry's approach to sophisticated business intelligence technology may in any case soon cease to become a matter of choice and become instead the subject of regulation. The UK's Financial Services Authority has recently published under CP 136 its proposed framework for individual capital adequacy standards (ICAS) which sets out a self-assessment process requiring firms to consider capital add-ons to minimum solvency requirements to address business, systems and control risks. John Harbor says, "For insurance firms, this will be a major new development as the current EU directive on solvency requirements for the insurance industry is not specifically risk-based. Firms will need to document how risks have been addressed and develop internal capital models, using stochastic techniques, to self-assess their capital requirements." The capital add-ons are designed to reflect exposure arising from operational risk and systems and control weaknesses. The FSA considers the adequacy of systems and controls to be fundamental to the capital adequacy assessment process. It acknowledges that its approach will need to be consistent with the capital adequacy requirements being developed by the EC. But it says the ICAS framework will not be delayed until completion of the latest EU solvency review, which is not expected before 2005 at the earliest, but will be introduced instead some time in 2004. "Time is of the essence for the insurance industry and those companies which will need to prepare for the new requirements can ill afford to lose any time," concludes John Harbor. "And business intelligence is an idea whose time has come."
Maritime Reporter August 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ESS Lands Second Contract with Dolphin Drilling

ESS Support Services Worldwide, part of Compass Group, has won a new, three-year contract, worth £10.5 million, to provide hotel and catering services to Dolphin Drilling Ltd.

Kurdish Crude Oil Tankships: End-Game Still in Doubt

After a legal show-down in Texas this week, the outlook for a handful of tankers holding some $300 million worth of Kurdish oil is not looking good. Seemingly

Greek Warship Evacuates Libya Personnel

Greece safely evacuated embassy staff and more than one hundred Chinese and European nationals from Libya early on Friday with a navy frigate sailing back to the Greek port of Piraeus,

Shipbuilding

Jinhai Heavy Industry Secures Another Invention Patent

Jinhai Heavy Industry of China has received patent rights for its large ship superstructure hoisting method after a state intellectual property review. The patent rights is for twenty years.

Korea Shipbuilder Wins US$400-M Greek Order

Daewoo Shipbuilding & Marine Engineering Co., South Korea’s second-largest shipbuilder, says it has signed a contract to build 4 tankships for Maran Tankers Management,

Tuco Marine Sells First ProZero Fast Workboat

Tuco Marine Group says that it has sold its first boat shortly after the launch of ProZero, the new range of boats for the professional market. The vessel was sold

 
 
Maritime Standards Navigation Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2549 sec (4 req/sec)