Virtual Entrepreneur

Top 10 Risks In Insurance

According to the Ernst & Young study, ‘Strategic Business Risk 2008‘, the top 10 risks are:

1. Climate change: long-term, far-reaching and with significant impact on the industry.

2. Demographic shifts in core markets: offers business opportunities but risk that other sectors will capitalize first.

3. Catastrophic events: rising costs and serious impact on earnings for insurers.

4. Emerging markets: risk and opportunity but competitive threat from new players.

5. Regulatory intervention: increased scrutiny impacting on operations and practices.

6. Channel distribution: technology is changing the way insurance is sold and purchased.

7. Integration of technology with operations and strategy: an enabler to keep pace with competition but lack of integration is a threat at the strategic business level.

8. Securities markets: changes in capital providers and the way capital is entering the insurance industry are causing major changes in the industry.

9. Legal risk: significant and unexpected change in the legal environment, such as government legislation or evolving case law, will continue to have a critical impact on the insurance industry.

10. Geopolitical or macroeconomic shocks: likely causes unknown but consequences potentially severe.

Via Insurance Journal.