Since the deregulation of the German insurance market, insurers have faced one new regulatory requirement after another, such as the KonTraG, Solvency I, BilMoG, IFRS, SEPA, Solvency II, R15/2005, MaRisk (VA) – R3/2009, the VVG reform etc. Far-reaching consequences have been the result, extending even to management control – so taking action is needed. But where is one to begin and in which areas?
To implement the regulatory requirements, especially those arising from the current focus on Solvency II and MaRisk (VA), insurance companies must pay special attention to data provision, availability and to risk management.
Based on these focal points, business processes must be conceived, documented and implemented to ensure their structural and organizational embedding.
Furthermore, the integration of risk-based indicators in value-oriented management control has repercussions on sales management, direct business and on controlling it by means of Web-based online applications.
Without adequate safeguards a company can sustain severe damage, especially in times of crisis, running into financial difficulties or even insolvency.
So risk management must be seen as an opportunity and not as an obligation. Companies that manage their risks on the basis of the actual risk situation gain an edge on the competition.
In view of the current regulatory requirements of insurance companies (VVG reform, MaRisk, Solvency II) the focus is on both the conception and the documentation of business processes. But an often underestimated potential lies dormant in fundamental everyday business processes that can be harnessed by means of systematic documentation and optimization of core processes.
Value-based management must be seen as a leading concept in modern corporate governance. It means aligning business activities to increasing enterprise value.