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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Jet Edge Celebrates 30 Years in Waterjet Industry

Waterjet systems manufacturer Jet Edge, Inc. celebrated its 30th anniversary Sept. 3 with a special open house celebration. Jet Edge’s anniversary event included

TITAN Salvage Receives NAMEPA Award

The North American Marine Environment Protection Association (NAMEPA) announced earlier this month that Houston-based TITAN Salvage, a subsidiary of Crowley Maritime Corp.

MM&P Hopes to Pad Ranks with Brown Water Mariners

New York Harbor Tug Boat Captains and Crews, Staten Island Ferry Workers, Circle Line and Other Tourist Boat Crews Vote on Joining New Union Uniting with the International Organization of Masters,

Shipbuilding

Jet Edge Celebrates 30 Years in Waterjet Industry

Waterjet systems manufacturer Jet Edge, Inc. celebrated its 30th anniversary Sept. 3 with a special open house celebration. Jet Edge’s anniversary event included

Damen Delivers ASD Tug in Italy

RimorchiatoriRiunitiS.p.A. of Genoa (Italy) has taken delivery of a Damen ASD Tug 2411. The 70-metric-ton bollard pull azimuth stern drive tug will be temporarily deployed by Tug Malta Ltd.

NRC Program Targets Vessel Operating Costs, Safety

Canada’s NRC creating solutions for the growing Canadian shipbuilding, military vessels, marine commercial transportation and offshore resource industries As

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair
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: 0.3276 sec (3 req/sec)