The 2021 Global Risk Management Study shows that insurers are facing dramatic change.

Since the 2008 financial crisis, we have been monitoring risk management and the role it plays in the insurance landscape more closely. Thus, the global study on risk management conducted by Accenture in 2021 tells us that while the risk function is growing in importance, it is also undergoing radical changes.

And indeed: in 2009, during the first Accenture global study on risk management, insurers were amid crisis management. Two short years later, the function was gaining in maturity; in 2013, it disciplined itself a little more and integrated with other functions of the sector. In our 2015 study, those responsible for risk management in the insurance industry collaborated with business leaders, and played a greater role in strategic decision-making, but also those related to operational planning.

Where have we been since?

The 2021 Global Risk Management Study shows that insurers are facing dramatic change. Conducted among 190 executives from the insurance sector (life insurance, damage insurance, and reinsurance), our survey highlighted the 10 challenges facing this sector today:

• Greater volumes and a greater variety of data to process are hitting insurance companies at a faster rate than ever.
• Multiple regulations involving different jurisdictions are accumulating and are increasingly demanding vis-à-vis insurers. Attention to control and compliance rivals providing quality customer service.
• New digital technologies are revolutionizing business models, but talent in the field of emerging technologies is scarce and competition to attract them is intensifying between companies.
• At the same time, the use of data stored in old systems remains a challenge, including for the risk function, in a context where the budgets available for new investments are limited.

Insurance industry risk managers have their work cut out for them. But for many of them, the temptation is great to withdraw and wait. Indeed, with all these changes, why not wait wisely for these trends and upheavals to settle down?

Good question. But in terms of risk management, procrastination is likely to translate into a higher risk than that incurred by taking action. And this, even if the means of action are uncertain. Why? Because some of the challenges that await insurers can also turn out to be opportunities. This is indeed what our 2021 global study on risk management reveals in its report dedicated to insurance, which highlights, by way of example, the duality inherent in cyber-risk in the insurance sector. A threat? Certainly. But a threat that also represents a potential market estimated at several billion dollars. In other words, a great business opportunity for insurers.

In future articles, we'll take a look at the top three barriers identified in our 2021 study, and see how insurers can discover positive aspects that will help them meet these challenges. To be continued…Insurers and risk management today: A more mature, but constantly changing landscape

The 2021 Global Risk Management Study shows that insurers are facing dramatic change.

Since the 2008 financial crisis, we have been monitoring risk management and the role it plays in the insurance landscape more closely. Thus, the global study on risk management conducted by Accenture in 2021 tells us that while the risk function is growing in importance, it is also undergoing radical changes.

And indeed: in 2009, during the first Accenture global study on risk management, insurers were amid crisis management. Two short years later, the function was gaining in maturity; in 2013, it disciplined itself a little more and integrated with other functions of the sector. In our 2015 study, those responsible for risk management in the insurance industry collaborated with business leaders, and played a greater role in strategic decision-making, but also those related to operational planning.

Where have we been since?

The 2021 Global Risk Management Study shows that insurers are facing dramatic change. Conducted among 190 executives from the insurance sector (life insurance, damage insurance, and reinsurance), our survey highlighted the 10 challenges facing this sector today:

• Greater volumes and a greater variety of data to process are hitting insurance companies at a faster rate than ever.
• Multiple regulations involving different jurisdictions are accumulating and are increasingly demanding vis-à-vis insurers. Attention to control and compliance rivals providing quality customer service.
• New digital technologies are revolutionizing business models, but talent in the field of emerging technologies is scarce and competition to attract them is intensifying between companies.
• At the same time, the use of data stored in old systems remains a challenge, including for the risk function, in a context where the budgets available for new investments are limited.

Insurance industry risk managers have their work cut out for them. But for many of them, the temptation is great to withdraw and wait. Indeed, with all these changes, why not wait wisely for these trends and upheavals to settle down?

Good question. But in terms of risk management, procrastination is likely to translate into a higher risk than that incurred by taking action. And this, even if the means of action are uncertain. Why? Because some of the challenges that await insurers can also turn out to be opportunities. This is indeed what our 2021 global study on risk management reveals in its report dedicated to insurance, which highlights, by way of example, the duality inherent in cyber-risk in the insurance sector. A threat? Certainly. But a threat that also represents a potential market estimated at several billion dollars. In other words, a great business opportunity for insurers.

In future articles, we'll take a look at the top three barriers identified in our 2021 study, and see how insurers can discover positive aspects that will help them meet these challenges.