Risk-position reporting in the South African life-insurance industry

Abstract

Risk management is central to the running of a successful insurance operation. This means that insurers must be able to measure and monitor their risks using risk-management tools that will effectively help them manage and exploit these risks. This paper considers risk-reporting techniques in the life-insurance industry in South Africa, reporting on the results of a survey of current practice. Liability risk, asset risk, asset-liability risk, and operational risk are each viewed separately. The current state of reporting is considered and a view is taken as to the future outlook, identifying areas for potential improvements in risk reporting. Additionally, comparisons are made with current practices outside South Africa, particularly in North America. KEYWORDS Risk reporting; asset-liability management; South Africa. (South African Actuarial Journal: 2002 2: 1-28)