Page 11 - Turkinsurance Digital Magazine

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“Cyber Incidents” rank as top peril in digitalization and global warming.
Allianz Risk Barometer 2020 Cyber incidents is among the top three risks in many of the coun-

tries surveyed; in Austria, Belgium, France, India, South Africa,
As an annual survey that focuses on top risks for the insurance South Korea, Spain, Sweden, Switzerland, the UK and the US it
market, 9th Allianz Risk Barometer reveals the trends for 2020 ranks as the top business risk.
and guides insurance companies in the right direction. Prepared
by Allianz Global Corporate & Specialty (AGCS) as an annu- Companies can suffer major BI losses due to the unavailability of
al business risks survey, attracted record participation of 2,718 critical data, systems or technology, either through a technical
experts including CEOs, risk managers, brokers and insurance glitch or cyber-attack. Many incidents are the results of human
experts from over 100 countries. error and can be mitigated by staff awareness trainings which
are not yet a routine practice across companies.
According to the survey, “cyber incidents” ranks as the most im-
portant business risk globally, despite ranking 15th with just 6% Risk rankings change in 2020
of the responses of the participants seven years ago.
After seven years at the top, “business interruption” drops to the
Awareness of the cyber threat has grown rapidly in recent years, second position in the Allianz Risk Barometer. With a potential
driven by companies increasing reliance on data and IT systems to cause huge losses for companies, today’s business interruption
and a number of high-profile incidents. Accordingly, perennial can be a result of fire, explosion or natural catastrophes to digi-
top peril “business interruption” (BI) decreased to second place. tal supply chains or even political violence.
“Changes in legislation and regulation” and “climate change”
are the biggest climbers globally, underlining the US-China “Changes in legislation and regulation” ranks third in the Al-
trade war, Brexit and global warming as increasing concerns for lianz Risk Barometer 2020, up from fourth in 2019. Around
companies and nations.
1,300 new trade barriers were implemented in 2019 alone. The
US-China trade dispute has brought the US average tariff close
Joachim Müller, CEO of AGCS, highlights that cyber risk and to levels last seen in the 1970s. “Climate change” rose to the po-
climate change are two significant challenges that companies sition of seventh. According to the report, companies may have
need to watch closely in the new decade. He adds that preparing to prepare for more litigation about climate change in future.
and planning for cyber and climate change risks is both a matter
of competitive advantage and business resilience in the era of

2020 priorities for life and non-life insurance companies
Re-positioning insurance companies as technology players
Communicating more effectively about why the industry matters, its societal value and why it’s an appealing sector in which to
develop a career
Operational excellence and cost efficiency
Managing compliance to regulations
Digitalizing distribution
Mastering emerging technologies
Navigating the risks and opportunities of climate change
Reference: EY-Global Insurance Outlook 2020