Enterprise risk management in the South African insurance industry

Abstract

The purpose of this dissertation is to investigate Enterprise Risk Management (ERM) in the South African insurance industry. Firstly, this dissertation attempts to ascertain the current composition of the different facets of ERlVL These different facets are discussed in detail in the dissertation. The first of these include the insurance industry's definition of ERM followed by the tools and techniques involved in implementing Efu\1- driven risk management programmes. The third facet is the regulatory measures which form part of the industry. This provides a proper link with the fourth facet, namely that of the exponents applying ERM and how their roles are governed by regulatory bodies. Another facet is the training programmes that exist to educate insurance industry players and entrants to efficiently use EM1. The sixth facet motivates why ERM is actually used by delineating the benefits connected with Efu\1 processes. The dissertation furthermore investigates the extent to which ER11 is already incorporated in the South African insurance industry. A questionnaire ,vas completed by industry members in order to obtain an insight into the practical side of ERM that reigns in South Africa today.