By Daniel Hunter
The annual “Banana Skins” survey of perceived risks has revealed that cyber risk is the biggest concern for UK insurers. The UK insurance industry shares a growing global concern about tightening regulation, specifically its cost and distraction, and especially its potential to damage London’s place as the world’s foremost insurance capital.
Most of the risks in the Top 10 are related to the rapidly changing insurance landscape and ever evolving challenges such as cyber risk, reshaping of distribution channels, and the constant demand for new-style products. Even the ability of the industry to handle these challenges is listed as a risk — “change management” ranks third as one of the biggest worries for UK insurers.
Stephen O’Hearn, PwC global insurance leader, commented:
“The long-term prospects for the insurance sector are positive as people around the world live longer and have more wealth to protect. Yet insurers also face the disruptive impact of new technology, changing customer expectations, more exacting regulation and enduring economic uncertainty.”
Mark Train, PwC global insurance risk leader, commented:
“The ability to identify and manage emerging, as well as familiar, risks is at the top of the boardroom agenda and will be one of the key differentiators for success in a marketplace that offers considerable long-term opportunities, but also disruptive threats."