InsuranceERM Annual Awards 2022 - Americas

Consultancy of the year: KPMG

KPMG wins the consultancy of the year title for its insurance enterprise risk management (ERM) advisory services.

The consultancy says its offering for insurers spans across all three lines of defence: the business units, the risk management and ERM function and the audit function. It views ERM policy as intrinsically linked to strategy, value proposition and broader corporate governance.

KPMG says maintaining a strong risk management programme is critical for capital management, as well as preserving value and achieving growth.

This allows insurers to manage and mitigate negative risks, as well as embrace the opportunities from positive risks.

The consultancy's ERM framework considers eight elements of an insurer's risk profile:

  • Governance / Roles and Responsibilities
  • Risk Management Strategy, Appetite and Limits
  • Risk Policies and Standards
  • Risk Assessment and Measurement
  • Risk Reporting
  • Data and Tools
  • Risk Communication
  • Performance Management

KPMG has supported insurance clients in areas from providing recommendations on current ERM programmes, to formally developing a tailored programme and helping with innovation. This has included assisting insurers with their Own Risk Solvency Assessment (Orsa) submissions.

The consultancy explains this not only involves helping clients improve their understanding of what is expected from regulators, but also wider industry expectations.

KPMG also highlights its work with one insurer to improve its capital management capabilities. KPMG was awarded the work as it was able to bring in professionals from both its capital strategy and transformation teams.

The consultancy provided perspectives on the client's dividend capacity, while also helping the insurer to enhance its capital projection capabilities. By bringing in knowledge from across different areas, KPMG helped the client deliver a more accurate and efficient way of managing capital.

Beyond the Orsa, KPMG explains it has provided services to insurers on how to incorporate artificial intelligence usage across risk areas.