So far, 2013 has not been a banner year for the insurance industry. In fact, some would argue that the couple of decades or so have not been easy on the sector. From grappling with intense competition, an uninterested Millenial geographic, extensive regulation and a continued decrease in revenues, the industry is struggling to ward off the next threat and, according to a recent report from Ernst & Young, there are many to protect against.
“This year’s list of top risks and opportunities makes it clear that the insurance sector needs to adjust to a new environment of lower returns on assets and stricter regulation on everything from capital allocation to commission rates and customer care,” the report states.
The survey, Business Pulse, identifies 10 top risks for insurers for the remainder of 2013 and through 2015. They are:
(It’s important to note two new additions to the top 10 risks this year: (1) Cyber risk and data security and (2) acquisition and retention of talent.)