Unum builds a risk framework for Solvency II

Harnessing IBM Business Analytics technology to increase control and visibility for operational risk management

Published on 6 Mar 2012

We completed a ‘dry run’ of our operational risk capital assessments using the OpenPages data feed and it showed that our methodology will meet all the requirements. As we continue to roll out the solution to our user community, we expect to start seeing operational benefits as well – for example, in the long term we expect to see a reduction in avoidable losses as a result of a more joined-up approach to risk management across the business.

John Swallow, Risk Manager, Unum

Customer
Unum

Industry
Insurance

Deployment country
United Kingdom

Overview

Unum is a specialist in financial protection insurance which operates in both the US and the UK. In the UK, Unum Ltd has approximately £2 billion in assets under management, and its policies protect more than 1.8 million individuals. It employs around 1,000 people at three main UK offices in Dorking, Basingstoke and Bristol.

Business need
Like all European insurers, Unum is faced with the challenge of preparing its business for the introduction of the EU Solvency II Directive. Unum wanted to introduce a clearer and more dynamic risk management framework to help it comply with these new regulations.

Solution
Unum implemented IBM OpenPages Operational Risk Management to assess and manage risks and controls, capture data on risk events, and provide detailed reporting and analysis capabilities. The project was delivered within eleven months and on budget.

Benefits
Meets the requirements of Solvency II regarding risk management, providing the business with a clearer link between capital and risk management. Provides a single solution that helps risk, compliance and audit teams review risk information more efficiently. Reduces the time spent on aggregating data for reporting and analysis. Makes it easier to align day-to-day risk management practices with board-level decisions on risk appetite. Should ultimately minimise avoidable losses by improving visibility of risk across the organisation.

Components

IBM products and services that were used in this case study.

Software
OpenPages Operational Risk Management

Hardware
Power Systems

Services
Software Services for Business Analytics

Solution
FSS: Insurance - Risk and Compliance, , Business Integration,

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