Technological Change and Cyber Risk Overtake Regulation as Top Risks for Insurers

'Banana Skins' survey reflects industry risk perception

LONDON, May 30, 2017 (GLOBE NEWSWIRE) -- The global insurance industry's ability to confront structural and technological changes is now the greatest risk it faces, according to a new survey of insurers and close observers of the sector.

The CSFI's latest Insurance Banana Skins 2017 survey, conducted with support from PwC, surveyed 836 insurance practitioners and industry observers in 52 countries, to find out where they saw the greatest risks over the next 2-3 years.

Insurance Banana Skins 2017  (2015 ranking in brackets)
1	Change management (6)
2	Cyber risk (4)
3	Technology (-)
4	Interest rates (3)
5	Investment performance (5)
6	Regulation (1)
7	Macro-economy (2)
8	Competition (-)
9	Human talent (15)
10	Guaranteed products (7)
11	Political interference (16)
12	Business practices (11)
13	Cost reduction (-)
14	Quality of management (12)
15	Quality of risk management (10)
16	Social change (20)
17	Reputation (18)
18	Product development (17)
19	Corporate governance (21)
20	Capital availability (22)
21	Complex instruments (25)
22	Brexit (-)

Change management is at the head of a cluster of operating risks which have jumped to the top of the rankings. The report raises concerns about the industry's ability to address the formidable agenda of digitisation, new competition, consolidation and cost reduction it faces, especially because of rapidly emerging technologies which could transform insurance markets, such as driverless cars, the 'internet of things' and artificial intelligence.