Climate change is the greatest strategic risk that insurance industry leaders must manage if they are to maintain dominant competitive positions. A new study from Ernst & Young and Oxford Analytica puts climate change at the top of the strategic risk list for insurers, followed by demographic shifts in core markets (a priority for life insurers) and catastrophic events.  The study’s findings were based on interviews with more than 70 industry analysts around the world.  The analysts also identified five emerging risks, just outside the top 10, with the potential to become as significant during the next five years.  These are: over reliance on model-based risk management; threats to industry reputation; losing the war for talent; increasing exposure to global regulatory heterogeneity; and the possible emergence of entirely new risks.

Climate Change No. 1 in Top Ten Insurance Risks (Insurance Journal 3/12/08)

April 1, 2008