Insurance Banana Skins 2013

What risks do insurers worldwide face in the current climate and how are they prioritising them?

PwC presents the results from our biennial survey: Insurance Banana Skins, which examines risks facing the industry, and includes insights from over 660 insurers, regulators and close observers of the industry across 54 countries. This survey has been produced with the Centre for the Study of Financial Innovation (CSFI) and is aimed at senior executives in the insurance sector.

The survey found the following for the Irish sector:

  • Irish Insurance sector more resilient than the global industry, scoring 3.27 compared to 2.95, on the world average of preparedness to handle insurance risks
  • Top risks for Insurers based in Ireland include the macro-economic environment, the impact of new regulatory requirements which are resulting in a very high compliance burden, as well as the risks arising from poor investment performance

Looking across the 27 different ranked risks, some interesting differences emerge comparing the Irish perspective to the global view. The following are some notable differences:

Higher concerns compared to global counterparts Ireland Global
Distribution channels 5 11
Actuarial assumptions 6 12
Innovation 7 13
Reputation 8 14
Climate change 12 18

Lower concerns compared to global counterparts Ireland Global
Quality of risk management 15 7
Quality of management 20 8
Corporate governance 27 17
Human Resources 24 19

To understand how the Insurance sector in varying territories is responding in the current climate download the full Insurance Banana Skins report.