- Business Interruption remains the leading risk in Allianz’s global Risk Barometer.
- Market developments including volatility, market stagnation and intensified competition have appeared in the top three for a second year in a row along with the increasing concerns over threats associated with Cyber Risks.
- Other growing concerns include changes in legislation and regulation.
The Australian insurance industry is likely to face challenges from a much wider range of disruptive forces in 2017 including new technologies, market volatility and further regulation according to the 2017 Allianz Risk Barometer of Top Business Risks.
For the first time since the inception of the Risk Barometer six years ago, the concerns of Australian businesses have generally aligned with the concerns of counterparts across the globe.
Companies are concerned about market volatility (#2) caused by increasing automation, digitalisation and interconnectivity, and intense competition from non-traditional and agile starts-ups. Cyber incidents (#3) including cyber-crime, data breaches and IT Failures, as well as increased regulation and changes in legislation (#4), have seen the greatest jump in rankings over the last twelve months.
However, what continues to trouble Australian businesses the most are losses arising from Business Interruption (BI) and Supply Chain Risks, which has taken the top spot in Australia and remains the number one concern globally for the fifth year in succession. While natural catastrophes and fires are the business interruption causes feared most, there is an emerging risk shifting increasingly towards non damage events such as a cyber incidents or the indirect impact of an act of terrorism or political instability.
Allianz Global Corporate & Specialty (AGCS) Pacific’s Chief Executive Officer, Willem Van Wyk, said that “the rise of new technology and the shift from physical asset protection to intangible risks means that insurers also have to evolve.”
“While businesses are bracing themselves for a year of uncertainty, we are committed to working with them to re-think their current monitoring and risk management tools, with expert support and greater consideration given to more fluid, data driven and intangible risks,” he said.
“Allianz expects that the demand for new insurance coverage such as cyber and non-damage business interruption will also increase as companies look to protect against the increasing range of risk exposures. We are well positioned to support companies as they review the changing and emerging risks they face,” he said.
The annual Allianz Risk Barometer identifies the top corporate perils and potential solutions for 2017 and is based on the responses of more than 1,200 risk experts from 55 countries, including Australia. Respondents included risk consultants, underwriters, senior managers and claims experts in the corporate insurance segment of Allianz Global Corporate and Specialty (AGCS) and other Allianz entities around the globe.
To view or download the full Allianz Risk Barometer 2017 visit: https://www.agcs.allianz.com/content/dam/onemarketing/agcs/agcs/reports/Allianz-Risk-Barometer-2017.pdf
Allianz Media Team // firstname.lastname@example.org