A survey of global captive managers carried out by Aon has found that 90 percent believe risks are becoming increasingly interdependent in the global marketplace.
This is one the key findings from Aon’s latest Global Risk Management Survey, entitled Underrated threats?, which considers the key risks facing the insurance industry in 2014.
Topping the list were: economic slowdown/slow recovery, regulatory/legislative changes; increased competition; damage to reputation/brand and failure to attract or retain talent.
Aon asked a number of questions around these findings challenging captive managers to justify their positions on particular risks.
A key issues raised by Aon was the threat posed by cyber attacks, which 83 percent of captive management respondents agreed is an under-rated threat. Aon said that the array and impact of cyber attacks made it a major issue for the sector.
As Greg Case, CEO of Aon puts it: “Our advice is that companies should understand that cyber risk is no longer on the horizon”.
Aon also examined continuity risk following the Tohoku earthquake and tsunami, which resulted in 41 percent of affected companies facing supply chain disruptions for more than six months, according to the Business Continuity Institute.
Aon found that 90 percent of captive respondents say they face an increasingly interdependent world, with events such as Tohoku helping to raise awareness of the threat posed by events in disparate geographies.
Addressing creativity within the sector, Aon found that 76 percent of respondents believe that the industry could be more creative, with the trend particularly marked among companies in the EMEA region and those with revenue in excess of $1 billion.
Aon says that with most key risks currently uninsurable or underinsured, the industry must be more creative to open up new frontiers. Aon found that while innovation is taking place, few of the ideas are being commoditised. Aon questioned whether communication with clients is effective as it could be.
Read the full Aon report here.
Aon, captive insurance, ERM, risks