The Risk Management Function Of A General Insurer

Assignment 1 You are the Head of the Risk Management Function of a general insurer. The insurer is currently reviewing its corporate strategy. The insurer has always distributed its products directly to customers, but it is now considering distributing its products via insurance brokers or even purchasing an insurance broker. Question As part of the strategic planning process, you have been asked by the Board to: †¢ Explain the contribution that risk management can make to an effective strategic planning process. †¢ Analyse the risks for this insurer if it decides to distribute its products via insurance brokers; and the risks for this insurer of owning an insurance broker. Learning Outcomes This question covers the following core†¦show more content†¦Ã¢â‚¬ ¢ Assessing the different types of risks the insurer will face via distribution through brokers and owning a broker. Furthermore, I will also assess the impact of distributing products to clients directly. Explain the contribution that risk management can make to an effective strategic planning process. NFU – expanding outside it’s farming community – strategic risk Directline – strategic risk Strategy A well adopted strategic approach to risk management involves the process of ‘identifying, assessing and managing’ of risk within a company, thus forming the fundamental steps towards the whole risk management process. Strategy involving risk management can be regarded as adopting a coherent and controlled approach to risk management process (identifying, analysing, and managing). The process of identifying and reviewing the risks that you face is known as risk assessment. By assessing risks you are able to be actively aware of where uncertainty surrounding events or outcomes exists and identifying steps that can be taken to protect the organisation, people and assets concerned. How this is achieved and the level of detail which is considered can vary between organisations. In many circumstances, where staff or volunteers have a more hands-on role in the organisation, the Management Committee may not carry out the risk assessment themselves. An effective strategic approach to risk management enables us to assess the