Insurance companies are failing to carry out formal risk assessments before the Financial Services Authority's (FSA) proposed regulatory requirements come into force.

That is according to the Actuarial Profession, which has proposed a risk identification and assessment framework to help companies meet the requirements, as well as increase shareholder value and improve corporate governance and management.

A report was published by the financial conditional assessment working party on Monday.

The framework focuses on three components: the identification of all relevant risks, an assessment of individual risk profiles for all risks and the production of an overall risk profile.

One of the report's authors, John Ryan, said some companies had already adopted formal risk assessments.

“However, this is not widespread,” Ryan said. “Our proposals will help those companies to take positive action to identify risks and demonstrate they have the adequate resources to meet their obligations.”