According to a study conducted by ORIC International and the Institute of Risk Management (IRM) Cyber risk, the spread of the ebola virus and more changes to regulation and legislation are the Top Three priority risks for UK insurers in 2015.
Throughout recent years typical crimes like robbery have dramatically decreased from it’s pinnacle in the 1990s. Criminals have since took to other methods using various technology which has seen a rise in Cybercrime and Fraud reflecting the results in this survey.
Other issues which are causing growing concerns have moved there way up the list, such as the potential for the UK to withdraw from the EU or even the complete collapse of the EU.
The Top Ten emerging risks for UK insurers are as follows:
- Cyber risk
- Increased regulatory or legislative change
- Eurozone collapse/UK withdrawal from the EU
- Terrorist attack
- Significant changes in broker power/distribution chains/broker communities
- Shift in affluence to emerging markets
- Climate change
- Global political instability
- Technology advances
Caroline Coombe, CEO of ORIC International, states “Only 55% of survey participants are currently reporting emerging risk at Board level despite there being considerable benefits to effective emerging risk management.
“Companies must consider benefits including improved planning, awareness, competitive advantage, product innovation, better underwriting risk selection and enhanced pricing strategies.”