Page 12 - Turkinsurance Digital Magazine

10 cover story

This year, technology is listed as the top global risk for the first potentially damaging effects that disproportionate requirements
time. The urgent need for business and technology modernization could have in areas such as capital, consumer protection, and
poses the greatest threat to the global insurance industry over the product availability.
next 2-3 years, according to this year’s survey respondents. It is
also a pervasive theme throughout the report, underpinning other Concerns about investment performance remains high, though
high-ranking risks including the cyber risk, change management, the risk score has slipped slightly because insurers are taking
and competition. action to mitigate it. Many respondents made the point that in-
vestment income is a key contributor to profits, though the low
The threat posed by cybercrime to insurers ranks as number 2 returns of recent years have forced insurance companies to earn
both in 2017 and 2019 reports. In this year’s report, concerns more from their underwriting activities.
for cyber risk are observed to be increasing compared to previous
years. Technology is the biggest risk for Turkey,
Change management has been overtaken from its top position too

in 2017, being replaced by technology this year. The risk that
inadequate response to change will damage insurers continues to According to the report, Turkey has the highest risk index score;
be seen as an urgent one. in other words, is the most concerned country about the risks
issued in the report. On the other hand, Turkey also has a higher
A continuing heavy agenda of regulatory change is driving reg- score of preparedness to handle those risks compared to the glob-
ulatory risk up the rankings.Respondents expressed frustration al average. This shows that Turkish insurance market believes
with the cost and distraction of compliance, and warned of the they are ready to face those risks despite their concerns.