CSAA IG 2024 Impact Report_0725_Rev4 - Flipbook - Page 41
Practice
Our Impact
2024
From our CEO
• Amped up education efforts for
all employees about CSAA’s
Guiding Principles for AI, which
outline CSAA’s vision for AI at the
company; offer transparency to
customers, agents, media and other
external stakeholders; and provide
us with high-level guidance when
considering opportunities to
leverage AI in our business operations
Compliance
Our Corporate Compliance function
tracks ongoing compliance activities
throughout the organization,
evaluating our compliance risk
profile across a variety of categories.
Compliance reports to the chief
legal officer, who also serves as the
chief compliance officer, reporting
to senior management, the audit
committee and board of directors.
The Compliance function has always
played a central role in regulatory
change management. Given that, in
2024, the company moved product
compliance under the corporate
compliance umbrella to provide
more structure and support to the
BACK TO TOP
Planet
implementation of all new laws.
An effective regulatory changemanagement process requires
cross-functional coordination and
collaboration across our organization
to ensure we implement changes
that meet our legal obligations. As
Corporate Compliance has typically
played this role in the organization,
this change was natural, and now the
same team is managing all regulatory
changes. In 2024, we focused on
improving user experience of our
third-party compliance program
management solution by attending
training sessions hosted by our
vendor, configuring program features,
hosting business partner training
sessions, and refreshing reference
materials. This is just the beginning,
and we know that this change will
continue to strengthen our regulatory
change management process.
Our Compliance function also leads
employee education and awareness
initiatives to cultivate a culture of
integrity. In 2024, we hosted Adventures in Compliance & Ethics with
AAA, an enterprise event featur-
People
Practice
ing senior compliance leaders from
across the AAA federation. This event
celebrated our commitment to ethical business practices, in alliance with
our valued AAA club partners. During
the event, we also screened employee-created films as part of our third
Compliance and Ethics Film Festival,
in recognition of National Corporate
Compliance and Ethics Week.
Enterprise risk management
Enterprise risk management (ERM)
is ingrained in our culture and
organizational structure from the
top down to ensure explicit risk
decision-making. We have assigned
clear ERM roles and responsibilities
for the enterprise risk office; the
risk committee, made up of C-suite
members; the ERM leadership team;
and management. Additionally, we
have established a robust program
to ensure appropriate oversight of
top enterprise risks and traditional
insurance company risks.
To help us better prepare for climate
impacts to our business and
policyholders, in 2022 we added an
entirely new dimension to our risk
management through the adoption
of TCFD reporting. (See more in the
Planet section of this report.)
Our internal risk models assess our
risk profile and establish economic
capital and solvency requirements,
develop risk tolerance, allocate
capital to individual products and
geographies, establish targeted
rates of return to be used in
ratemaking, and aid in strategic and
operational decision-making. The
audit committee is responsible
for overseeing the risk assessment
and risk management process
and structure, with the full board
retaining visibility and involvement
in the process.
Each year AM Best closely evaluates
our balance sheet strength, operating
performance, business profile and
ERM program to rate our ability
to meet our ongoing insurance
obligations. It affirmed our financial
strength rating of A (Excellent) and
outlook of stable, unchanged from
