The New York State Insurance Department says insurers should be prepared for it to evaluate their enterprise risk management (ERM) functions.
Matti Peltonen, chief of the department’s capital markets bureau, talks about insurer ERM operations in a new draft circular letter addressed to all insurers operating in the state.
The New York department believes the ERM function is a key component of the risk-based surveillance process, it recently established criteria it will use to assess an insurer’s ERM practices, Peltonen says.
The department could conduct an ERM evaluation either together with an ordinary statutory examination or as a stand-alone exercise, Peltonen says.