PwC and the Centre for the Study of Financial Innovation (CSFI) have joined forces to gather responses from senior insurers and close observers of the financial scene to learn what they see as the biggest threat.
This 2017 survey is based on 836 responses from practitioners, regulators and observers of the insurance industry in 52 countries. Please explore the results received around the world using the interactive map below, and download the report to find out more about what the risks facing the insurance industry mean for your business.
Insurance Banana Skins is a piece of research conducted by the Centre for the Study of Financial Innovation (CSFI), an independent think tank, in association with PwC. It's a survey of insurers and seeks out their views on current risk and future trends.
By far the biggest riser this year, up from No. 15 just four years ago. Rapidly evolving markets, rising customer expectations and new distribution channels threaten traditional insurance business models, while incumbents held back by legacy systems and traditional modes of thinking endeavor to innovate in an unfamiliar environment.
A relative newcomer to the scene, narrowly missing a top place ranking, this risk has risen sharply with concerns about both crime and underwriting risk. This risk is seen to be exceedingly urgent due to an ever-growing volume of insurers’ business coming from digital channels.
Technology was the top ranked Banana Skin for non-life insurers. Incumbents in every sector of the industry are hamstrung by legacy systems and respondents felt that using technology to improve internal processes will be key to minimising insurers’ administration costs, a necessity for their long-term survival.
Concern about economic instability remains high and low interest rates are affecting the industry overall by depressing investment returns and, ultimately, company profitability, creating a generally riskier environment.
This Banana Skin is unchanged in position from last time. The combination of low interest rates and volatile equity markets has made it harder for insurance companies to find suitable long-term assets to match liabilities and generate adequate returns.
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