Survey shows that insurers are becoming more concerned about cyber risks
The Cyber Security Forum Initiative, alongside the Pew Research Center, has released the results of a new survey that highlights the risks that the insurance industry is facing. According to the survey, cyber risk and interest rates are now among the top risks that insurers are experiencing in the global market. Regulatory risks continue to be a significant concern for the insurance industry, but the rise in cyber attacks and other digital issues are beginning to cause concern for many insurers.
Regulatory changes cause concern within the insurance industry
In terms of regulation, new rules designed to govern the insurance market could change the way the industry manages costs and some insurers may encounter compliance problems. The survey suggests that regulatory changes could distract management from operating a healthy business, which could create significant problems for some insurers as the overall insurance industry goes through structural change.
Cyber risks are becoming a major problem for insurance companies
Cyber risk has appeared on the survey since the first time it was released in 2007. The insurance industry is becoming more concerned about the risks associated with the digital world. As the world becomes more reliant on the Internet, especially when it comes to doing business, malicious groups are finding new ways to exploit security faults in order to gain access to valuable information. Cyber attacks can have a catastrophic impact on a business, and insurers are still acclimating to the digital risks they see in this space.
Some risks are growing, but others are receding and becoming less of a concern for the insurance industry
While the insurance industry is becoming more concerned about significant risks, other risks are receding. The quality of management and corporate governance is becoming less of a concern for insurers, as companies are becoming more capable of conducting healthy business. Reputation risk is also becoming less of a concern, as companies are becoming more pro-active when it comes to public relations and engaging consumers through social media platforms.