OAKLAND, Calif., June 19, 2012 /PRNewswire/ -- StoneRiver Inc., the trusted insurance technology partner with solutions across multiple business lines, today announced the results of its second annual Financial Regulatory Survey. The survey focused on financial professionals dealing with regulatory reporting of U.S. insurance companies. The primary goal of the survey was to gauge opinions about regulatory and accounting-related issues within the insurance industry.
The survey results reflect the responses from 68 individuals, representing a mix of property/casualty, life, health, workers' compensation insurance companies, as well as a number of reinsurance companies. Seven key areas were addressed in the survey, which included:
- ORSA requirements: compliance assistance and information resources
- Plans to manage the transition to International Financial Reporting
- Standards (IFRS) if they become the U.S. accounting standard
- Primary information source for IFRS
- Ability of accounting software and reporting tools to provide the detail required for ORSA and/or IFRS requirements
- Plans to use ORSA/IFRS requirement changes project to achieve additional discretionary objectives
- Perception of the Reinsurance Model revisions
Notable survey results include:
- Half of respondents have an ERM process, although 23% indicated it is not a formal process with reporting. An additional 12% are in the process of developing an ERM process.
- Once ORSA requirement are finalized and assuming they applied to the company, 44% said they have the in-house expertise and would not use outside consulting services. A like number indicated they would seek external assistance.
- Primary information sources for ORSA would be current consultants (CPAs, actuarial firms, etc.) for nearly 42%, while 49% indicated they would rely on NAIC. The remaining 9% would split between IASA and other sources.
- Approaches to a transition to the International Financial Reporting Standards (IFRS), should it become a requirement, varied greatly with almost 30% noting they would 'learn as we go.'
- Nearly 60% expressed some level of doubt in the readiness of their current software and tools to handle future needs, especially the detail required for ORSA and/or IFRS requirements.
- The majority of respondents have not yet had the time to analyze the Reinsurance Model Revisions, but 22% expressed apprehension about how well it will work to have regulators determining approved jurisdictions and assigning insurer ratings.
StoneRiver liaison to the NAIC, Connie Jasper Woodroof, noted, "Responses to some of the survey questions were not surprising, but they were disheartening. In today's business atmosphere, a company needs to stay current on looming regulatory issues so the organization can move ahead with a plan when those regulations go into effect."
To download a copy of the most recent Financial Regulatory Survey results, visit http://www.stoneriver.com/tl/2012-regulatory-survey-results-overview
About StoneRiver, Inc.
StoneRiver delivers the industry's widest range of technology solutions and services to insurance carriers, agents, and broker-dealers. This versatile product group encompasses front-office, policy, claim, rating, underwriting, billing, reinsurance, financial and compliance solutions for all major business lines. Thousands of companies rely on StoneRiver software and processing solutions to achieve a competitive edge, with 18 of the top 25 insurance carriers leveraging the use of a StoneRiver system. Visit stoneriver.com for more information.
SOURCE StoneRiver Inc.