Insurers See Regulation As Greatest Risk to the Insurance Industry

Regulation and regulatory issues are the greatest risks facing the insurance industry according to a survey of almost 500 insurance insiders in 40 countries.
The Insurance Times UK is reporting findings from a study by the Centre for the Study of Financial Innovation and Pricewaterhouse Coopers that the "greatest risk facing the insurance industry is the raft of new regulation" in all major markets, including North America and Europe.

The raft of new insurance regulations threatens to swamp the industry with costs and compliance problems.
New insurance regulations "governing issues such as solvency and market conduct could swamp the industry with costs and compliance problems," according to the Insurance Times UK article about the study.

Almost 500 insurance practitioners and industry observers across 40 countries were polled for the study. Regulation concerns were the clear leader in all major markets, including North America, Europe, Middle East/Asia and the Far East/Pacific.

Regulatory burdens could also tax valuable resources and distract management's focus at a time when the insurance industry is already treacherous to navigate.
After insurance regulatory issues, the study found that reporting standards, tax initiatives, uncertain financial markets and the scarcity of capital to meet newly increased regulatory requirements were also significant worries of the insurance practitioners and industry observers that were surveyed. Natural disasters were also mentioned as a potential risk after a year of significant castrophes such as the recent events in Japan.

Regulatory burdens could also tax valuable resources and distract management's focus at a time when the insurance industry is already treacherous to navigate.

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1 comment:

  1. Good article. Interesting to see the mention of scarcity of talent as a threat, too.

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