Evolving risk appetite and KRI practices for insurers

At the April 2025 meeting of the ORX Insurance Sector Governing Committee (ISGC) and at the 2025 European Insurance Forum, members explored how insurers are evolving their approaches to developing Risk Appetite Statements (RAS) and Key Risk Indicators (KRIs). The sessions provided a timely overview of how RAS are being defined, governed, and embedded across the business supported by second line, as many suggest this is a continued area of focus and future development.

Following these discussions, ORX insurance members participated in a survey, which informed a risk appetite statements and key risk indicators in the insurance sector report capturing a comprehensive view of how organisations are defining, implementing, and governing RAS and KRIs. Below, we share insights from the report and from our discussions with members.