Potential climate change is the greatest strategic risk currently facing the property/casualty insurance industry, with demographic changes taking priority for the life insurance industry, according to a new study by Ernst & Young, closely followed by demographic change and catastrophic events.
For the new study, "Strategic business risk 2008" (pdf, 388kb), Ernst & Young and Oxford Analytica interviewed more than 70 industry analysts from around the world to identify the emerging trends and uncertainties driving the performance of the global insurance sector over the next five years. The study identified risks in three broad areas — macro, sector-specific and operational threats. It identified the top ten risks and five emerging threats.
Peter Porrino, Global Director of Insurance Services at Ernst & Young, comments, “Change is constant. Ten years ago, would climate change have been top of anyone’s risk list? Demographic change was obvious back then, but it is now a reality. Strategic risks vary for individual companies, but for the insurance sector as a whole these are the threats the experts say will have the greatest and most far reaching consequences. Insurers have to deal with them now, as they will change the business environment, the competitive pressures and the business opportunities. They have to view risk management as a way to improve operations, financial performance, and shareholder value.”
See full Press Release.
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