In an inaugural EY/Institute of International Finance (IIF) global insurance risk management survey, cybersecurity was ranked as the highest concern for chief risk officers.
CROs surveyed said the top five risk types or risk management types for the coming year were:
- 53% – Cybersecurity risk
- 35% – Insurance risk (e.g., underwriting risk, including lapses, catastrophic (CAT) and longevity risk)
- 32% – Business model change/transformation
- 26% – Credit risk (including country, sovereign and concentration risk)
- 24% – Tied between capital allocation, interest rate risk and technology risk (e.g., risk of inadequate management or maintenance of technology systems, networks, assets and applications)
Human capital risks (22%) also ranked high for the one-year outlook, reflecting a tightening labor market. Overall, 64% of participating CROs said attracting talent will become increasingly difficult in the long term. Third-party risk reflects scarce talent and the industry’s increased connectivity; more insurers seek to access specific capabilities and technologies via ecosystems and alternative sourcing models.
Concerns shift when the view is extended to emerging…
