As the financial climate improves, U.S. life insurers say they will invest to enhance their enterprise risk management methods, according to a new report.
The study was published jointly by Computer Sciences Corp., Falls Church, Va., and Towers Watson & Co., New York, in partnership with the American Council of Life Insurers, Washington.
The research shows that ERM–processes used by organizations to control risks and grab opportunities to achieve their objectives–is still under development. The reason: most life insurers operate under the constraints of limited technology and reporting capabilities that obstruct access to risk information, according to the research report.
Of the insurance executives polled for the report, 42% said ERM-related technology budgets will increase in the next 12 to 24 months. Of those companies planning to increase spending, half said they will increase their budget by 75% or more.