As the insurance sector continues to face the triple threat of ongoing regulatory pressures, shifting customer behaviour and a changing risk environment, finance teams are expected to provide boards with high-quality insight with which they can make decisions. However, many organisations continue to rely on large, data-heavy board reports that offer great detail but little guidance.
The challenge with board reports isn’t just about generating information. It’s turning that information into genuine insight and, in order to support stronger decision-making, insurers need to rebalance Management Information (MI) from volume to value.
The problem – data-rich but insight-poor
Finance functions in insurance have traditionally focused on comprehensive reports containing detailed results, KPIs, extensive commentary, inputs from multiple departments, and a meticulous response to regulatory requirements. While this is undoubtedly vital for control and compliance, and to ensure accuracy and completeness, it’s inadvertently created more confusion than clarity and the results can sometimes be overwhelming.
Typical pain points include:
- Over-long board packs, which obscure the key issues that directors need to address
- MI included for the sake of continuity, not because it informs strategic direction
- Inconsistent alignment with risk appetite, meaning that boards receive the data but not the context
- Reporting cycles that describe what has happened in the past rather than offer future forecasts.
A better approach – insight-driven MI
Creating more valuable MI isn’t about producing less data, it’s about producing higher-quality information. High-value MI distils information into actionable insight that enhances both risk oversight and strategic decision-making.
Key principles include:
1. Strategic questions, not spreadsheets – instead of relying on inherited templates, finance teams should start by asking the essential questions that the board must answer, such as:- Are we performing in line with plan?
- Do the current risks fit within appetite?
- What trends could impact capital, profitability or customer outcomes?
- Is capital being used in the right areas?
- What pressure points could affect performance in the months ahead?
When MI is designed around decisions, rather than data, the outputs become clearer, shorter and far more valuable.
2. Bringing finance and risk together – insurance firms often struggle with siloed reporting. MI becomes far more valuable when risk, finance and strategy work together to present a coherent view of the business.For example:
- Underwriting performance should be viewed alongside risk-adjusted return
- Cost and efficiency data should be linked to operational transformation
- Capital metrics should be discussed in the context of growth plans and appetite.
This approach allows boards to understand not just what is happening but why, and what the consequences might be.
3. Prioritise future analysis – boards need to anticipate what might happen in the future, and MI that looks ahead helps them to predict risks and opportunities.This means supplementing traditional reporting with:
- More scenario and sensitivity analysis
- Early warning indicators such as claims inflation, retention trends or distribution costs
- Forward-looking capital projections
- Strategic forecasts based on risk appetite.
With Solvency II reforms, IFRS 17 settlement, the UK market’s economic pressures and shifting customer behaviour all putting additional demands on insurers, the ability to anticipate issues is now crucial.
4. Streamline, standardise and simplify – clarity is as important as content. Finance teams can improve the impact of MI by:- Reducing duplication across packs
- Standardising dashboards and terminology
- Highlighting the key messages at the start of each section
- Providing a single, trusted data source to improve consistency.
Many insurers are now adopting digitally enabled MI platforms that streamline reporting, reduce rework and help boards to explore a variety of real-time scenarios.
From reporting to real influence
Leading risk, finance, and strategy teams are now redefining their roles from simply producing data to shaping the insights needed to drive strategy. By moving from volume to value, they help boards to navigate uncertainty, stay aligned with risk appetite and make decisions with greater confidence. For insurers, this shift isn’t just about better reporting, it’s about supporting stronger performance, sharper oversight and long-term resilience.
Next time: Beyond statutory accounts: The future role of the insurance finance function
If you’d like more information about how Brighter Consultancy can help you rethink your MI and board reporting and turn it from volume to value, contact us.
