Issue Management in (Re)Insurance: An Emerging Strategic Challenge

Today, the insurance and reinsurance industries find themselves exposed to an unprecedented degree of scrutiny from core stakeholders: policyholders, employees, investors and supervisory authorities. This increased interest is a reaction to the fundamental changes that have recently been taking place in the industry's operating environment. In response to this trend towards growing stakeholder awareness, (re)insurers are turning their attention to the concept of issue management, a system designed to help top management both avert risks and capture business opportunities, and which has a long and proven record in other industries. This article outlines this intriguing concept, and examines its mounting relevance as a mechanism for dealing with the shifting external parameters within which the industry operates. It draws heavily on Swiss Re's experience of implementing a formalized issue management process over a three-year period.