OLDWICK, N.J.–(BUSINESS WIRE)–Keeping up with the pace of technological change and advancements, the
globalization of capital markets, and other macro-environmental changes,
means that companies have to continually refine and enhance their
enterprise risk management (ERM) programs. As the insurance industry has
continued to expand and develop, so too have the potential
enterprise-wide risks.
A.M. Best has consistently considered ERM in its ratings
evaluation. but in its recently updated Best’s Credit Rating
Methodology, ERM is formally recognized as one of the core building
blocks, along with balance sheet strength, operating performance and
business profile, in developing a credit rating opinion on an insurance
company.
The Best’s Special Report, “Enterprise Risk Management: Behind
the Scenes, But at the Fore,” notes that A.M. Best views the majority of
its rated U.S. insurers as having an ERM assessment of “appropriate.”
A.M. Best has observed meaningful improvements in areas such as
operational risk, model validation, cyber…
