Financial Services Ireland


Business Pulse

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New Business Pulse report: Exploring the dual perspectives of the top risks and opportunities in 2013 and beyond.

As insurers adjust to a new environment of lower asset returns and stricter regulation, macroeconomic trends and a slow growth rate top the industry’s risk agenda, according to a new report released today by EY: Business Pulse: Exploring the dual perspectives of the top risks and opportunities in 2013 and beyond.

Our research is based on a survey of executives at over 65 insurance companies across the globe, who shared their insights and perspectives on the factors driving the industry over the next five years. The study identified the top 10 most important risks facing the industry, along with the opportunities insurers can capitalise on.

The top 10 risks are:

  1. Macroeconomic trends: how to deal with ongoing slower growth
  2. Regulation: a broad set of new regulations are emerging as a major source of risk
  3. Eurozone debt crisis: factoring in the global consequences of the crisis
  4. Reputational risk: safeguarding your reputation
  5. Corporate governance failures: with regulatory change, stakeholders seek confidence in corporate governance
  6. Cyber-risk and data security: how to contain the growing threat
  7. Talent recruiting skills: acquisition and retention of talent challenges insurers
  8. Impact of tax and accounting changes: recent actions are closely tied to regulation risk
  9. Operational risk: quantification of risk on the organisation
  10. Availability and cost of capital: a continuing concern and how to attract investors

As highlighted in our report, there are many opportunities for insurers to improve their business, enhance revenue and focus on the customer. Improved distribution and product development dominates our list of this year’s opportunities and is expected to remain high in the rankings by 2015.