A recent State Street survey on the insurance industry, conducted by The Economist Intelligence Unit, has shown that more than a quarter of insurance firms globally are experiencing difficulties in managing risk.
Twenty-nine percent of insurance executives globally also say their companies have divested lines of business since the start of the financial crisis due to new capital requirements or risk management considerations.
A quarter of EMEA respondents said they have difficulty in hiring knowledgeable, qualified risk management staff. This was considerably higher than the 16 percent cited from respondents in the Americas.
The corresponding percentages for Europe, the Middle East and Africa were higher at 39 percent.
David Suetens, executive vice president and international chief risk officer at State Street, said: “The changing environment in the insurance industry is transformational: enhanced product design, changes in the distribution channels, regulatory demands and their investment practices.”
“Consequently, the EIU survey highlights risk management as one of the most pressing areas of challenge for industry leaders. This new landscape places a laser focus on risk. When adjusting their business models, firms must confront the resulting risk challenges to successfully adapt to this exciting new environment.”
