Risk management and data "are critical success factors" in insurer ratings, says Moody's

US-based rating agency Moody's says "the quality of data and risk management are growing in importance as success factors" for insurance companies, and as a result it is putting additional emphasis on these areas when reviewing a company, according to a recent report.

The report, spurred on by the European Union’s Solvency 2 initiative, which is designed to overhaul regulatory capital for insurance companies, goes on to say that “accurate risk assessment and capital allocation depend on first-class IT systems. For management, the better the information, the easier it is to make informed decisions in managing complex organizations in volatile times. Active capital management and active exposure management should thus be considered together.”

The report also