Under increased pressure for reporting requirements from key stakeholders including legislators, shareholders and policyholders, insurers can look to SAS.
The leader in business intelligence today announced plans for SAS Enterprise Risk Management for Insurance to help insurers comply with legislation and embrace better risk management processes.
Featuring specific portfolios for both general (property and casualty) and life insurance, the planned applications suite will cover measurement and management for both regulatory and economic capital as well as risk monitoring and risk-adjusted performance management. Driven by the extensive enterprise risk data architecture of SAS, applications are customised for the insurance industry's specific needs.
SAS Enterprise Risk Management for Insurance will provide a more consistent and open regulatory framework to ease selling across different markets. The more sophisticated and accurate assessment of insurers' capital requirements reduces costs by eliminating the need for excess capital.
A comprehensive data architecture specific to the insurance industry ensures a consistent approach to enterprise-wide risk management. Insurers will increase transparency by translating risk strategy into tactical plans for all levels within the company. Insurers will be able to enhance business performance through improved product management support. Ultimately, performance volatility will diminish through strategic, financial and operational plans that are consistent with a company's risk demands.
"Worldwide legislation in various industries regulates enterprise risk management, beginning with Sarbanes-Oxley in 2002, followed by Basel II and now Solvency II," said Patricia Finn, Vice President, Global Public Policy at SAS. "As a recognised leader in addressing Basel II, it is only natural that SAS help customers address additional regulations and provide superior risk management capabilities across the enterprise."
Solvency II is the forthcoming European Union directive for insurance companies regarding capital requirements and related supervision. The purpose is to ensure financial stability of insurers and hence reduce the risk of failure by taking assets and liabilities into consideration.
The expansion of SAS' risk offerings is a testament to its commitment to leading the risk market. Chartis Research recently positioned SAS as an established leader for credit risk in "Credit Risk Management Systems 2007" and as the leader for the third consecutive year in its "Operational Risk Management Systems 2007" report.