Insurers, reinsurers cite cyber, terror as greatest emerging risks
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Cyber attacks and terrorism are the most threatening emerging risks for the insurance and reinsurance industry in 2015, according to a survey released Wednesday by Guy Carpenter & Co. L.L.C.
Of those surveyed, 40% said cyber attacks are the most threatening emerging risk, while 31% said terrorism is the most threatening for the coming year. Climate change was cited by 29% of those asked as the most threatening emerging risk for 2015. Space risk was ranked the least threatening to the industry by 82% of those surveyed.
“Cyber attacks are one of the most serious economic and national security challenges facing not only the insurance industry, but governments and businesses around the world,” Andrew Marcell, managing director and CEO of U.S. operations at Guy Carpenter, said in a statement.
Opportunities for profitable growth in 2015 will come from new products, according to 40% of those surveyed, up from 24% in 2013. New geographic markets were cited by 29% of respondents as presenting opportunities for profitable growth in 2015, followed by new distribution channels at 17% and mergers and acquisitions at 14%.
Undisciplined and unprofitable underwriting is the greatest threat to growth plans in 2015, according to 30% of survey respondents, while 22% said regulatory and ratings agency changes pose the greatest threat to growth plans for 2015. Global economic uncertainty was cited by 19% as the greatest threat, up from 12% last year, while 11% said operational inefficiencies are the leading threat, down from 15% in 2013.
Technology improvement and talent acquisition and retention were ranked highest, 37% and 38% respectively, by executives asked on what they would spend a blank check.
The survey, which was conducted at this year's annual meeting of the Property Casualty Insurers Association of America in Scottsdale, Arizona, Oct. 26-29, was based on the responses of 111 insurance and reinsurance executives.
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