Wave of new regulation tops insurance sector risks: Insurance Banana Skins 2013

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The greatest risk currently facing the insurance industry comes from the wave of new regulations which are being introduced at international and local levels, according to a new survey which ranks insurance sector risk.

The CSFI’s latest Insurance Banana Skins survey, conducted in association with PwC, says that new rules governing issues such as solvency and market conduct could swamp the industry with costs and compliance problems. It could also distract management from the more urgent task of running profitable businesses at a time when the industry is under stress.

Top 10 Insurance Banana Skins 2013:

(2011 ranking in brackets)

  1. Regulation (1)
  2. Investment performance (4)
  3. Macro-economic environment (3)
  4. Business practices (18)
  5. Natural catastrophes (5)
  6. Guaranteed products (-)
  7. Quality of risk management (15)
  8. Quality of management (14)
  9. Long tail liabilities (7)
  10. Political interference (11)

The survey polled over 600 insurance practitioners and industry observers in 54 countries to find out where they saw the greatest risks over the next 2-3 years. Regulatory risk emerged a clear leader in many major markets, including North America, Europe, and the Far East/Pacific.

To find out more about the Insurance Banana Skins 2013 and to get the insights from insurers, regulators and industry observers, watch the PwC/CFSI Insurance Banana Skins video, available: http://www.pwc.com/bananaskins