Insurers can transform planning and performance management to deliver forward-looking insights, according to the latest report from ICMIF Supporting Member EY, Finance in insurance reimagined: Building a strong planning and performance management capability. The report highlights both why now is the time for finance and other leaders to rethink and expand their planning capabilities and how to thoughtfully and purposefully realize the powerful vision moving forward.
In an era of intensifying regulatory scrutiny, rising investor expectations and increased competition, insurance business leaders are eager for better business information. Ideally, they’ll have real-time access and the ability to explore it on their own. However, most organizations – even those with dedicated financial planning and analysis (FP&A) teams – lack the tools to produce timely and forward-looking insights.
Instead of FP&A functions serving as curators of budget and forecast data, insurers should aim to create a planning and performance management capability that serves as an oracle for the business, generating timely, high-impact insights into the performance drivers of results and producing a persuasive business story for external stakeholders.
Realizing the vision for the future of finance in insurance will take considerable effort, but the potential upside makes it worthwhile. The value proposition for enhanced planning and performance management is especially strong relative to on-demand decision support and modeling, where management can see the impact of potential actions and decisions across financial frameworks and key metrics for performance and earnings.
Click the following link to download a PDF copy of the EY report: Finance in insurance reimagined: Building a strong planning and performance management capability (pdf)
An abridged article “Why insurers must reimagine planning and performance management” written by EY authors, Chad Runchey EY Americas Insurance Financial Performance & Risk Leader, and Carol-Ann Back Managing Director, Insurance, can be accessed here.