Our insurance firms played a crucial role in our largest ORX survey to date for the H2 2024 Top Risk Review. Using the feedback from insurance participants in the survey, we have developed a new Insurance Analysis Report that identifies and prioritises the key risks that need to be addressed.
The H2 2024 Top Risk Review offers a comprehensive analysis of critical themes, focusing on the most significant operational and non-financial risk (ONFR) threats facing banking and insurance firms.
The latest survey received 49 responses from representatives from insurance companies making up 25.8% of the participants.
225+
respondents
49
insurance participants
22
insurance firms
How insurance and banking responses differed
Respondents representing the insurance sector typically rate risks lower than those representing banks. As a result, looking at comparative rankings shows only part of the picture. For example, Regulatory Compliance ranked two places higher with the insurance segment, but overall scores were slightly below banks.
Some risks are consistently scored lower by insurers
External/Internal Fraud, Financial Crime and Conduct typically receive significantly lower scores by respondents from insurers likely as a result of the nature of both the sectors and the risks.
Insurers did score some risks higher than banks
Model, People, Statutory Reporting and Tax and Legal scored higher among insurers. These risks were the only ones to score markedly higher among insurers than banks. Insurance-specific IFRS 17 standards impacting Model and reporting/compliance risks as well as greater perceived People-related challenges among insurers were key reasons for this.
In alignment with the broader group of participants, insurance respondents called out:
- Skills shortages and recruitment challenges
- Insufficient succession planning
- High retirement rates
- Budgetary and resource constraints (leading the stress and burnout)
- Cultural challenges and change fatigue
The top three risks identified by insurance firms are:
- Information Security (incl. Cyber)
- Third Party
- Technology
ORX members can read the Insurance Analysis Report to find out all 16 risks and rankings. Also, members can read the full H2 2024 Top Risk Review and supporting documents.
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