KPMG’s Insurance group works with the life, non-life and health insurance, reinsurance, pension funds and broker sectors of the industry. Backed by an international panel of insurance professionals, our team of dedicated insurance specialists offers comprehensive multidisciplinary services to both international and domestic insurance clients in Belgium. The group consists of a multidisciplinary network of auditors, tax and financial advisors offering leading practice from around the world.
We are able to quickly anticipate and address the concerns of our clients on the key themes in the insurance industry such as:
- Financial, Risk and Capital Management – The need to balance the core business aspects of finance, risk and capital remains a top priority for many firms. There is an increase in initiatives to build stronger links between the risk and finance functions, resulting in greater involvement in strategic aspects of the business. In addition, the release of the Solvency II Phase 3 consultation papers – focusing on the Solvency Capital Requirements and Minimum Capital Requirements – is likely to further stimulate the industry debate. By proposing a consistent approach to risk and capital management, Solvency II can bring substantial benefits to insurers that take fewer risks
- Improving operational efficiency and optimizing costs – As the industry faces a period of consolidation and streamlining, firms strive to optimize their cost base. All aspects of the cost base are under scrutiny: from Front Office expenses, through organization, processes and IT to Procurement. To improve operational efficiency and optimize costs, insurers focus on process improvement programs to reduce overheads, including fraudulent claims, product rationalization and operational platform rationalization.
- Developing robust governance and compliance processes – With the escalation of risk management to the board, senior management is increasingly required to understand and challenge management information to make business and strategic decisions. There is also a focus on implementing Enterprise Risk Management initiatives to bring robust risk management and governance to the core of the business. In addition, it remains to be seen what will emerge from the regulatory debate, especially with regard to developments in customer protection requirements.
- Strategic re-evaluation of businesses – Insurers with sufficient capital basis are likely to continue to undertake M&A activity, acquiring assets at competitive prices. Others may need to raise cash by disposing assets or improving efficiency through off-shoring. These are just a few options that insurers may consider to improve low capital reserves as a result of continued low investment returns.