Insurance Banana Skins 2015

What risks do insurers face both globally and locally in the current climate and how are they positioning them?

PwC is proud to present the results of our biennial survey, Insurance Banana Skins. This survey has been produced with the Centre for the Study of Financial Innovation (CSFI) and is aimed at senior executives in the insurance industry. 

The 2015 report examines risks facing with insights from over 806 insurers, regulators and close observers of the industry across 54 countries. 

Regulation is once again a prominent Banana Skin facing global insurers, with the survey identifying a widespread fear within the industry that the volume of the regulation is swamping the industry and calling into question longstanding strategic certainties. This risk is closely followed by Macroeconomic Risk and Interest Rate Risk (new entrant). 

However, the new Banana Skin ‘Cyber Risk’, has ranked the 4th highest risk concern for global insurers, and the top risk concern facing the Australian insurance sector. This risk is becoming more prevalent as more business moves to online and mobile channels, and insurer's vulnerabilities to hacking, fraud and data compromise continue to amount. 

Top risks (from an Australian perspective):

  1. Cyber Risk (up from 13th position in 2013)
  2. Macro economy (up from 5th position in 2013)
  3. Distribution channels (up from 3rd position in 2013)

Top global risks (from a global perspective):

  1. Regulation (maintains its 2011 and 2013 position as the number one risk).
  2. Macro-economy (up from 3rd position in 2013).
  3. Interest rates (ranked for the first time).

Highlights

  1. Regulation tops the list of external risks for the third consecutive edition of the survey.
  2. Respondents noted that the industry is better prepared than previous years to manage risks.
  3. One of the most striking issues insurers are worried about is cyber risk, specifically software failure and data security.

Insurance Banana Skins 2015

PwC is proud to present the results from our biennial survey: Insurance Banana Skins, which examines risks facing the insurance industry and identifies those that appear most urgent to insurance practitioners and close observers of the insurance scene around the world.

Download Global edition of Insurance Banana Skins 2015

Contact us

Scott Fergusson

Partner, PwC Australia

Tel: +61 2 8266 7857

Follow PwC Australia