Ernst & Young releases insurance industry resiliency report for 2008
| 03.20.2008 | 09:19:59 | Views: 3536 | ID:
March 20 '08: Continuity Central reported on a new study produced by Ernst & Young in collaboration with Oxford Analytica which interviewed more than 70 insurance industry analysts globally "to identify emerging trends and uncertainties driving the performance of the global insurance sector over the next five years."
Peter Porrino, the Global Director of Insurance Industry Services for Ernst & Young said in the report, "we have identified leading strategic business risks and have rated the severity of the strategic risk management challenge posed by each emerging issue. ... This is not an exhaustive list, but it is a stepping stone to ongoing dialogue and innovative thinking that is essential within every organization."The report broke the current risks into three categories: macro threats; sector threats; and operational threats. Macro threats such as global climate change, catastrophic events, geopolitical instability and demographic shifts in core markets represent long-term and far-reaching challenges which "present complex ramifications for the insurance industry because companies underwrite such a wide range of risks." Sector threats such as emerging markets, and regulatory intervention have solutions which "are clearer and more developed compared" with the macro threats. Finally, the operational threats which incorporate including new technology into current business best practices "are changing so rapidly that they have the potential to have a serious impact on the industry and result in losses for individual firms." The top ten strategic risks in order are: climate change, demographic shifts in core markets, catastrophic events, emerging markets, regulatory intervention, channel distribution, integration of technology with operations strategy, securities markets, legal risk, geopolitical or macroeconomic shocks. National Blueprint Tags: Economic & Infrastructure.
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