All major Australian insurers have revisited their risk operating models over the past 18 months and honed their focus on this area, according to EY’s Asia-Pacific chief risk officer (CRO) survey.

“Leading insurers are clear in how they cascade risk appetite from group to business units and can cite clear examples where decisions were made with regard to risk appetite,” the professional services giant says.

In Australia regulators have mandated that the CRO be a senior appointment and member of the executive, and they cannot be dual-hatted with other positions such as the actuary.

CROs at Asia-Pacific insurers are striving to prove how they add value to organisations, according to the survey.

Those at leading insurers worldwide are developing key risk indicators and key performance indicators to show the importance of the role, and EY says Asia-Pacific counterparts are expected to follow the same path.

“Many CROs mention a seat at the table as the only key indicator when asked about the value they create for the company – but this is a question the business often asks and the CROs should address promptly,” it says.

“Given risk is not immune from cost reduction pressures affecting other business functions, it is more important than ever that a strong case is made to attract investment.”

But strengthening risk accountability and understanding across all areas is still a challenge for CROs, and there remain shortcomings on the operational side.

“Although CROs devote a significant proportion of time to managing the regulatory agenda, we increasingly see CROs focusing more on the business agenda.”

A large proportion of respondents put cyber and conduct among their biggest operational concerns.

EY spoke to a “spectrum of leading life and non-life insurance companies, reinsurers and prominent groups” headquartered in the Asia-Pacific region.