Enterprise risk management (ERM) is still in the development phase in the GCC markets. Insurers are increasingly sensing the need to have more robust and systematic risk management processes for the future, largely to meet either regulatory or rating agency requirements. However, many GCC insurers still view ERM as just a compliance exercise or a rating agency requirement, failing to recognise that their ERM programmes are also meant to generate significant business value. With only a few companies in the region beginning to move beyond compliance and pursue greater value from their ERM initiatives, companies with a mature approach to risk management can achieve a competitive advantage.
This article was first published in the February 2014 edition of Middle East Insurance Review (MEIR).