Change Management In Financial Services

I just received a great call from a client's accounting department! They called to check my bank details over the phone as I was a new vendor in their system. This is great financial control! You can not trust the bank details on a supplier's invoice. Hackers can and do hack into email accounts and change invoices before they are processed. I've seen it in real life. They change the bank details, then you pay the wrong supplier and BOOM you are now the victim of cyber theft. (very embarrassing for a CFO if this happens). Every single accounting department should be calling every supplier to check their initial bank details and any future changes. And you don't trust the phone number on the invoice. You google the business and find their phone number independently. And you get the supplier to read out the bank details, you don't read them out to them to confirm. Basic but critical financial controls over your vendor masterfile. Few clients have these controls in place. And when they don't I usually call the CFO or FC and suggest a change to their vendor master file processes to minimise their risk of fraud. How tight are your internal controls over your vendor master file? Is it time for a review? #fraud #internalcontrol #AP #internalaudit

𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝘄𝗶𝗹𝗹 𝗯𝗲 𝘁𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝘀𝘆𝘀𝘁𝗲𝗺 𝘁𝗼 𝗰𝗿𝗮𝗰𝗸 𝘂𝗻𝗱𝗲𝗿 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗶𝘀𝗸 — 𝗮𝗻𝗱 𝗶𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗰𝗼𝗻𝗰𝗲𝗿𝗻 𝘂𝘀 𝗮𝗹𝗹. Natural disasters caused $𝟯𝟲𝟴 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 in global economic losses last year, according to Aon — the ninth year in a row losses topped $300 billion. Only 𝟰𝟬% of those losses were insured. The protection gap is widening. As insurers retreat from high-risk regions, public safety nets — often overstretched — are stepping in. More households, businesses, and governments are being left to absorb risks they cannot afford. This isn’t just about insurance anymore. When insurance breaks down, so does credit. When credit dries up, property values fall, costs rise, and resilience weakens — just when it’s needed most. @Günther Thallinger 𝗳𝗿𝗼𝗺 𝗔𝗹𝗹𝗶𝗮𝗻𝘇 put it starkly: “𝘛𝘩𝘦𝘳𝘦 𝘪𝘴 𝘯𝘰 𝘤𝘢𝘱𝘪𝘵𝘢𝘭𝘪𝘴𝘮 𝘸𝘪𝘵𝘩𝘰𝘶𝘵 𝘧𝘶𝘯𝘤𝘵𝘪𝘰𝘯𝘪𝘯𝘨 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘴𝘦𝘳𝘷𝘪𝘤𝘦𝘴. 𝘈𝘯𝘥 𝘵𝘩𝘦𝘳𝘦 𝘢𝘳𝘦 𝘯𝘰 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘴𝘦𝘳𝘷𝘪𝘤𝘦𝘴 𝘸𝘪𝘵𝘩𝘰𝘶𝘵 𝘵𝘩𝘦 𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘵𝘰 𝘱𝘳𝘪𝘤𝘦 𝘢𝘯𝘥 𝘮𝘢𝘯𝘢𝘨𝘦 𝘤𝘭𝘪𝘮𝘢𝘵𝘦 𝘳𝘪𝘴𝘬.” The Institute and Faculty of Actuaries (IFoA) project a 𝟱𝟬% 𝗰𝗼𝗹𝗹𝗮𝗽𝘀𝗲 𝗶𝗻 𝗴𝗹𝗼𝗯𝗮𝗹 𝗚𝗗𝗣 𝘄𝗶𝘁𝗵𝗶𝗻 𝗱𝗲𝗰𝗮𝗱𝗲𝘀 if climate risk is not properly managed. Climate risk is no longer a future scenario. It is here. It is compounding. And it is reshaping our economy in real time. There are positive signs: ➤ Hannover Re and Swiss Re are restricting fossil fuel underwriting. ➤ Parametric insurance models are speeding up disaster recovery. ➤ EIOPA and the European Central Bank are pushing for public-private risk sharing. These are encouraging — but early signs. 𝗠𝘆 𝘁𝗮𝗸𝗲: Climate risk is already disrupting the systems we rely on: insurance, credit, asset valuation, and public finances. Systems change is needed. The insurance sector holds a unique vantage point — but leadership now demands rethinking long-held assumptions about risk, resilience, and responsibility. The sector has an opportunity to lead: ➤ Embed forward-looking climate risk into underwriting ➤ Signal future exposures more transparently ➤ Drive transition finance to accelerate decarbonisation ➤ Redirect investment into adaptation ➤ Co-design shared risk pools and resilience bonds Collaboration between insurers, financiers, and governments is no longer optional — it is the foundation for economic stability in a climate-disrupted world. The sooner we align risk pricing with physical reality, the stronger our chances of building a more resilient economy for the future. #climaterisk #insurance #resilience #finance #sustainability #systemicrisk #adaptation –––––––––– For updates on sustainability, climate, and innovation, follow me on LinkedIn: @Scott Kelly

Insurance Quarterly Report Amidst the fragmented and scarce availability of insurance data in Indonesia, we are proud to present the second edition of our Insurance Quarterly Report for Q1 2025 by Indonesia Financial Group (IFG) Progress. Below are four key findings and their implications for the insurance industry by Q1-2025: 1. Life Insurance Sector: Profit Improves, But Investment Income Plunges Finding: The life insurance industry recorded a post-tax profit of Rp5.3 trillion (↑132% YoY), mainly due to lower PAYDI redemption claims. However, investment income fell by 95% YoY, driven by bearish bond markets. Implication: Reliance on investment returns is becoming riskier. Life insurers must diversify investment portfolios and enhance underwriting profitability. Persisting on PAYDI without reform could expose insurers to market volatility and reputational risks. 2. General Insurance Sector: Claims Rise Amid Stagnant Premium Growth Finding: General insurance premium income stagnated (-0.04% YoY), while claims increased by 4.5%, notably in property and credit insurance. Property insurance claims saw their highest increase in 2 years. Implication: Insurers need to tighten underwriting standards, especially in high-risk lines like property and credit. Rising loss ratios in these lines threaten profitability and require reserve strengthening to maintain solvency. 3. Structural Profitability Risk in Life Insurance Finding: Life insurance still suffers from an unhealthy combined ratio of 106% and a claim ratio of 81%, meaning operating costs and claims exceed premium income. Implication: This raises long-term sustainability concerns. Without better risk pricing or cost containment, many life insurers may struggle to maintain profitability, especially as investment income becomes less reliable. 4. Regulatory Shifts and Legal Risks are Emerging Finding: A Constitutional Court ruling limits insurers' ability to unilaterally cancel policies due to "utmost good faith" violations. Additionally, new SEOJK regulations on health insurance (co-payment, medical board) are being introduced. Implication: Insurers face greater legal risk and regulatory burden. Product terms, claim management, and customer communication strategies must be overhauled to remain compliant and competitive—especially in health and life lines. Find the complete link: https://lnkd.in/e8pSetmS. The report is prepared by Rosi Melati, Ezra Pradipta Hafidh, FSAI and Nada Serpina

FD: "I transferred that £30K, like you asked." MD: "What do you mean?” [awkward silence] It was at that point that FD realised he'd f**ked up. MD had been out of the country on holiday in Portugal, and it was his first day back. While MD was away, FD received an email from "MD" asking him to transfer £30K for a deposit for a new villa he was buying. The email said that someone from Barclays would call with the bank details the next day. "Barclays" called the next day, and the funds were duly transferred. Two weeks later, the fraud was discovered during a chance encounter at the coffee machine. By then, the money was lost and in the hands of cyber criminals. These criminals didn't need to hack in or compromise any accounts. They'd spoofed an email and used details freely available on the company website and in social media posts. This was a few years ago, but the message remains. Be careful about what you share online. Ensure your email system uses SPF, DKIM, and DMARC to guard against spoofing. Set up controls around financial payments so they can't be authorised using email alone. It's that time of year when many business owners and directors are on holiday, and fraudsters are on the hunt. Take care, and enjoy your break.

🚨 Alert: Payroll Update Scams Target Small Businesses 🚨 Recently, several connections in my network have reported a payroll scam targeting small businesses. Scammers are sending phishing emails to employees, pretending to request updates to payroll information. These fraudulent emails claim to be from employees asking for changes to their direct deposit details. Once the changes are made, payroll funds are diverted to accounts controlled by the scammers, leaving businesses and employees at a loss. Why Does It Work? Scammers exploit weaknesses in email applications, such as those that don’t display sender addresses clearly (e.g., macOS Mail), or rely on recipients failing to verify the sender’s identity before replying. Once the recipient responds, the scammers provide their own bank account information, which is then updated for payroll. How Does It Work? Step 1: Scammers identify an employee at a business using publicly available information, such as LinkedIn or the company website. Step 2: They look for HR or finance personnel who handle payroll. Step 3: Using a spoofed email address that mimics the employee's name, they create a fake identity. Step 4: Scammers send an email requesting payroll updates and wait for a response. Common Red Flags in Scam Emails: * The sender’s name matches an employee but uses a random or suspicious email address. * The recipient is someone in the finance or HR department. * Subjects often include phrases like “Employee Name,” “Correction of Account,” “Payroll Update,” or “Bank Information Update.” Protect Your Business: Verify Requests: Always confirm direct deposit changes through a secondary channel, such as a phone call or in-person verification. Train Your Team: Educate employees and HR staff to recognize phishing attempts and report suspicious emails. Secure Communication Channels: Use encrypted systems or secure portals for sensitive payroll updates. Enable Alerts: Set up notifications for account changes to catch unauthorized updates quickly. Scammers are becoming increasingly sophisticated, but awareness and vigilance are your first lines of defense. Protect your team, protect your business. 💡 Have you encountered a payroll scam? Share your insights to help others stay informed. CyberArmor #Fraud #Payroll #Scammer

Why 90% of the Fortune 500 Now Use Captives... and What That Means for Risk & Capital When more than 90% of Fortune 500 companies run a captive insurer, Boards are sending a clear message: resilience can’t just be bought off the shelf. Captives are no longer niche. They’re structural. They’re how companies are: ✔️ Replacing rigidity with flexibility ✔️ Using their own balance sheets to control predictable risks ✔️ Building platforms to test new coverages, access reinsurance, and even co-insure with peers This isn’t corporates walking away from insurance. It’s corporates reshaping it. What Leaders Must Know: ✅ Captive ownership has surged from under 50% in 2000 to ~90% of the Fortune 500 today. ✅ Mid-market companies are now catching up fast. ✅ Captives improve claims speed, enforce stronger data discipline, and even reduce EPS volatility. ‼️ Every dollar into a captive is a dollar not returning to the traditional pool, unless carriers, reinsurers, and capital markets engage with them, not against them. ➡️ The future is not “captives vs carriers” but captives + carriers + capital markets. Together, that’s how we build resilient risk-transfer systems fit for modern Boards. Why It Matters for AkinovA & Clients: At AkinovA, we see our role as bridging these three worlds: 1️⃣ Helping corporates leverage their captives more effectively. 2️⃣ Enabling insurers and reinsurers to re-engage with high-quality premium that might otherwise be lost to self-insurance. 3️⃣ Bringing capital markets alongside, not as a substitute, to expand liquidity and resilience and accessing structured risk flows aligned with corporate needs. 🧠 Boards aren’t simply asking for lower premiums. They’re asking for resilience they can trust. Those who can deliver it, collaboratively, will remain relevant. Those who can’t risk being left behind. 👉 Full article here on Substack: https://lnkd.in/egKSV6KT #CaptiveInsurance #EnterpriseRisk #CorporateResilience #InsuranceInnovation #AlternativeRisk #RiskTransfer #InsuranceLinkedSecurities #BoardStrategy #CICA #RiskCapital #StrategicResilience Captive Resources, LLC Captive Insurance Companies Association Vermont Captive Insurance Assn Self-Insurance Institute of America Bermuda Business Development Agency (BDA) Bermuda Captive Network Guernsey Finance David Bubb JP Boulus Jim Furio Jesse Olsen Nicholas J Hentges MBA, CIC Richard Cutcher

The New Global Internal Audit Standards become effective on January 9, 2025, centers on a fundamental shift from a compliance-focused practice to a strategic, value-driven function. Led by the Institute of Internal Auditors (IIA), this updated framework is more agile, principles-based, and prescriptive, equipping internal auditors to address the complex and rapidly changing risk landscape. Key themes dominating the conversation in 2025 include: Strategic alignment and enhanced governance Mandatory strategy: Chief Audit Executives (CAEs) are now required to develop and implement a formal strategy for the internal audit (IA) function that aligns with the organization's strategic objectives and stakeholder expectations. Increased board engagement: The new standards mandate increased involvement from the board and senior management. This includes formally authorizing the IA charter and collaborating on performance metrics to ensure IA's mission and strategic value are understood. Collaboration across defense lines: The standards require CAEs to actively coordinate with other assurance providers and the "three lines of defense" (management, risk management, and internal audit). This reduces redundancies, improves efficiency, and gives the board a more complete view of the organization's risk profile.  Leveraging technology Tech-driven assurance: IA functions are under pressure to adopt technology like AI, data analytics, and workflow automation to enhance efficiency, quality, and precision. AI is used to automate manual tasks and perform deeper, continuous risk sensing rather than periodic reviews. Digital strategy: The standards require IA to have a defined digital strategy. Technology should be used comprehensively to enhance processes, from automating delivery to using advanced analytics for fraud detection and continuous monitoring. Next-generation auditor skills: The rise of new technologies demands that auditors acquire new skills in areas like data science, AI, and cybersecurity. Firms are focusing on digital upskilling and leveraging co-sourcing to bridge talent gaps. Performance beyond compliance: The definition of quality has expanded beyond simple conformance to the standards to include performance that demonstrates strategic value. IA teams are moving from a "check-the-box" mentality to a more forward-looking, proactive advisory role. Evaluation of findings: Findings must now be prioritized based on significance and include an engagement conclusion that summarizes results against engagement objectives. Updated quality assurance (QA): Requirements for the Quality Assurance and Improvement Program (QAIP) have been elevated. This includes assessing IA's contribution to governance and risk processes and regularly monitoring performance against objectives. New topical requirements: The IIA is introducing "Topical Requirements" to provide mandatory guidance on critical and emerging risk areas.

Verifying identity needs to be a two-way street. I recently received an email from a bank asking me to put my signature on a change of mandate form. It looked exactly like a phishing attempt. There was no personalisation, no context, no rationale, no reference to the relevant bank account, and the sender’s email domain was @adobesign. Naturally, I didn’t click. It turned out that it was a genuine email. The irony is that banks demand such rigorous verification from customers - obscure details, years-old account information, the name of your uncle’s cat etc. - but they often don’t apply the same standards of verification to their own communications. In this case, the email did nothing to inspire trust. It raised every phishing red flag, vague instructions, no context, no personalisation, an unverified sender, and a “click here” link. I had decided it wasn’t genuine but I happened to mention it to a colleague and was told it was genuine. It was only by chance that I didn’t ignore it. The reminder email they sent (as suspicious as the first), did nothing to help. Now I know it was genuine, I’m going to have to reevaluate my screening for potential scams which may ultimately make me more vulnerable and make it easier for phishers. This is where firms - whether a bank or not -  need to rethink their approach. Instead of asking customers to trust suspicious-looking emails when proving their own identity, they need to treat trust as a two-way street: both establishing trust with their customers and proving the customer’s identity. There are a number of ways a company can do this. Instead of ‘click here’, they could ask you to go to their website, call the number on the back of the credit card, or provide an app which can be used to give access. Engaging customers through a trusted entry point makes a big difference in maintaining trust and security. And at this point, it should be common sense. If banks expect us to verify ourselves rigorously, they should hold themselves to the same standard. In an era of growing fraud risks, clear, verifiable communication is non-negotiable.

Commercial insurance market enters period of relative stability, while presenting opportunity for buyers. After years of volatility caused by the pandemic, inflationary pressures, and geopolitical unrest, the commercial insurance industry is entering a period of stability and opportunity, according to the latest Insurance Marketplace Realities report from Willis, a WTW business. Backed by industry surplus capital exceeding $1 trillion and reinsurance capacity over $725 billion, insurers are pursuing growth across multiple product lines. This capital strength is fostering a market environment increasingly favorable to buyers. Property insurance is entering a soft market, with renewal rates declining 8% in Q2 2025 following a 5.5% drop in Q1. Workers’ Compensation also remains favorable, supported by a $16 billion reserve surplus. The combination of ample capacity, excluding excess casualty, and advancing technological capabilities are enabling organizations to secure broader coverage and optimize program structures more effectively than in recent years. “Buyers are navigating a very different market than just a few years ago. We’re seeing meaningful opportunities for companies to enhance their programs and drive better returns on their insurance spend, even as certain lines remain under pressure.” Jonathon Rex Drummond #AI is emerging as a defining force in this transformational period. Once a vision of the future, AI is now reshaping underwriting, claims management, and product design. AI-powered tools are delivering deeper risk insights, enabling faster, more informed decisions, and supporting the creation of products tailored to emerging needs. Despite the improved markets? landscape, the report urges caution. Global insured catastrophe losses have exceeded $100 billion annually for five consecutive years. Systemic cyber events, financial market shocks, or escalating climate-related disasters could quickly reverse current gains and reintroduce volatility into the commercial insurance market. As the market shifts from disruption to opportunity, Willis emphasizes that now is the time for strategic action. Buyers who embrace data-driven decision-making, leverage emerging technologies, and partner with trusted advisors will be best positioned to capitalize on today’s favorable conditions while preparing for tomorrow’s risks. Scott Pizzi James Sallada Krista Cinotti Beth Cohon Tommy Edwards Chris Heinicke Chris Rafferty Kirsten Beasley https://lnkd.in/expMjGyd

𝗧𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗜𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 𝗶𝗻 𝗘𝘂𝗿𝗼𝗽𝗲: 𝗔𝗱𝗮𝗽𝘁𝗶𝗻𝗴 𝘁𝗼 𝗮 𝗖𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲 The #European #insurance industry is undergoing profound #change, driven by shifting consumer expectations, technological advances, and economic pressures. These forces are reshaping traditional distribution models and challenging insurers to adapt. As the world’s second-largest insurance market, Europe is diverse yet fragmented. While the UK and the Netherlands favor #brokers, Germany and Italy rely on #tied #agents. Despite these regional differences, all markets are experiencing rapid changes in how insurance products are distributed. #Economic and #demographic #trends, such as rising life expectancy, are widening the gap between customers’ insurance needs and actual coverage. Consumers increasingly demand #personalized, #seamless #interactions, compelling insurers to rethink #engagement #strategies and #leverage #technology. #Digitalization is transforming the #distribution #landscape. Online platforms, mobile apps, and #embedded #insurance, where coverage is integrated into products like travel bookings, are becoming vital. These #innovations allow insurers to reach untapped markets and offer #tailored #solutions aligned with broader #financial #needs. #Technological #advances, such as #artificial #intelligence and #data #analytics, are accelerating this shift. Insurers can use data to craft #personalized #offerings, optimize #pricing, and automate #operations like #claims #processing and #underwriting, boosting both #efficiency and #customer #satisfaction. Regulatory frameworks like the Insurance Distribution Directive (#IDD) and General Data Protection Regulation (#GDPR) add complexity. Insurers must innovate while ensuring compliance with data privacy and transparency requirements, necessitating robust digital strategies. Traditional channels, such as brokers and tied agents, remain essential for complex products but are increasingly supported by digital tools. The convergence of #physical and #digital #distribution channels requires insurers to provide seamless #omnichannel experiences to meet diverse #customer #expectations. To succeed, insurers must integrate physical and digital strategies, foster #partnerships with non-insurance entities, and invest in data-driven decision-making. Effective #change #management is critical to navigating the complexities of #transformation. Insurers that embrace digitalization, adapt to shifting customer demands, and innovate their offerings will unlock new #revenue #streams, enhance #customer #loyalty, and achieve #operational #efficiencies. In this era of change, success depends on the ability to #adapt #swiftly and strategically.