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Centre for the Study of Financial Innovation, an
independent forum, and PwC have published Insurance
Banana Skins 2019 report, which is a research based on

a survey conducted with insurance industry experts about
the current risks and future trends.

Prepared jointly by the Centre for the Study of Financial Innovation – CSFI and
PwC, the Insurance Banana Skins research reports the risks facing the insurance
market in accordance with the opinions of insurance experts all around the world.
It is prepared biannually since 2007. This year, they interviewed 927 insurance
practitioners, regulators and observers of the insurance industry across 53 territo-
ries, 27 of which contributed from Turkey.

According to the Insurance Banana Skins 2019, the overall tone of the responses
this year was more negative than previous surveys since 2007. This pessimism
is due largely to challenges facing the industry throughout the technological and
structural transformation process, and the concerns about the industry’s capability
to manage all those challenges.

In the background of these results, there lie the increasing economic uncertainties
and regulations all around the world.

Other reasons creating increasing concern among the insurers include political and
regulatory risk which could impose constraints on the industry. Regulatory risk
is seen to be rising strongly this year, driven by initiatives such as IFRS 17 and
stronger capital and consumer protection requirements. The report also indicates
that growing protectionism and populist policies all around the world concern both
the international and domestic insurance markets through trade wars and deeper
interference.

According to this year’s report, top five global risks for the insurance market are
listed as technology, cyber risk, change management, regulation, and investment
performance.

GLOBAL
2015 2017 2019
Regulation Change management Technology
Macro-economy Cyber risk Cyber risk
Interest rates Technology Change management
Cyber risk Interest rate Regulation
Investment performance Investment performance Investment performance
Change management Regulation Climate change
Guaranteed products Macro-economy Competition
Distribution channels Competition Human talent
Natural catastrophes Human talent Macro-economy
Risk management Guaranteed products Interest rate
Reference: www.pwc.com.tr