Tag Archives: PWC

Diversity And Inclusion In Insurance

Insurers are committed to recruiting to create a diverse and inclusive culture and as we celebrate International Women’s Day our industry is one of many striving to attract, develop and retain female talent.

Some 78 percent of large organizations around the world are actively trying to recruit more women, according to PwC, and we’re now seeing competition for female talent escalate to a whole new level.

“As employers enter this talent battle, they need to recognize they won’t just face competition from other would-be employers when hiring female talent. As employer demand for female talent rises over time, it will be critically important not only to attract female talent, but also to be able to develop, engage, progress and retain female talent once inside the organization.”

Establishing gender diversity recruitment targets is a key practice at employers whose diversity efforts led to increased levels of female applicants and hires, PwC found.

The Insurance Information Institute (I.I.I.) reports that in 2015, there were 1.6 million women employed in the insurance sector, accounting for 59.4 percent of the 2.7 million workers in the insurance industry, according to the Bureau of Labor Statistics.

To find out more about diversity and inclusion efforts across the insurance industry, check out the I.I.I.’s new webpage.

PwC: Incidence of Cybercrime Sharply Higher

Cybercrime has jumped to the second most reported type of economic crime affecting 32 percent of global businesses, according to a just-released survey by PwC.

PwC’s Global Economic Crime Survey 2016 found that while traditional leaders of economic crime–asset misappropriation, bribery and corruption, procurement fraud and accounting fraud–all showed a slight decrease over 2014 statistics, cybercrime is on a steady increase.

In fact over one quarter of the 6,000 respondents to PwC’s survey said they’d been affected by cybercrime.

Despite a sharply higher incidence of reported cybercrime among PwC’s respondents, the survey found that most companies are still not adequately prepared for–or even understand the risks faced.

Only 37 percent of organizations have a cyber incident response plan in place and many boards are not sufficiently proactive regarding cyber threats.

Even though  boards have a fiduciary responsibility to shareholders when it comes to cyber risk in several countries, PwC found that less than half of board members actually request information about their organization’s state of cyber-readiness.

Losses from cybercrime can be heavy, PwC reported. A handful of respondents (around 50 organizations) said they had suffered losses over $5 million. Of these, nearly one-third reported cybercrime-related losses sin excess of $100 million.

Reputational damage was considered the most damaging impact of a cyber breach among survey respondents, followed by legal investment and/or enforcement costs.

According to PwC:

The insidious nature of this threat is such that of the 56 percent who say they are not victims, many have likely been compromised without knowing it.”

This year’s results show that the incidence of economic crime has come down, for the first time since the global financial crisis of 2008-9 (albeit marginally by 1 percent).

Check out  the I.I.I. white paper  Cyber Risk: Threat and Opportunity  for the latest on cybercrime, risks and insurance.

Cybersecurity Budgets Rise, But Not Realizing Full Value

Technology is not enough in the fight against cybercrime, effective cybersecurity measures require policy and process changes as well.

That’s the takeaway from an analysis of cyber-risk spending included in the 2015 U.S. State of Cybercrime Survey recently released by PwC.

While cybersecurity budgets are on the rise, companies are mostly reliant on technology solutions to fend off digital adversaries and manage risks.

Among the 500 U.S. executives, security experts and others from public and private sectors responding to the survey, almost half (47 percent) said adding new technologies is a spending priority, higher than all other options.

Notably, only 15 percent cited redesigning processes as a priority and 33 percent prioritized adding new skills and capabilities.

When asked whether they have the expertise to address cyber risks associated with implementation of new technologies, only 26 percent said they have capable personnel on staff. Most rely on a combination of internal and external expertise to address cyber risks of new solutions.

PWCCyberSpending2015

As PwC advises:

Companies that implement new technologies without updating processes and providing employee training will very likely not realize the full value of their spending. To be truly effective, a cybersecurity program must carefully balance technology capabilities with redesigned processes and staff training skills.”

Employee training and awareness continues to be a critical, but often neglected component of cybersecurity, PwC said. Only half (50 percent) of survey respondents said they conduct periodic security awareness and training programs, and the same number offer security training for new employees.

Some 76 percent of respondents to the survey said they are more concerned about cybersecurity threats this year than in the previous 12 months, up from 59 percent the year before.

As PwC noted, in today’s cybercrime environment, the issue is not whether a business will be compromised, but rather how successful an attack will be.

Check out Insurance Information Institute (I.I.I.) facts and statistics on cybercrime here.

Cybercrime Costs Greater for U.S. Companies

U.S. businesses are losing more financially from cybercrime, compared to their global peers, but are generally less aware of the cost, according to PWC’s 2014 Global Economic Crime Survey.

As cybercrime continues to increase in volume, frequency and sophistication, PWC’s findings suggest that U.S. organizations are more at risk of suffering financial losses in excess of $1 million due to cybercrime.

According to the study, some 7 percent of U.S. companies lost $1 million or more, compared to just 3 percent of global organizations.

In addition, 19 percent of U.S. organizations lost $50,000 to $1 million, compared to 8 percent of global respondents.

PWC doesn’t elaborate on the reasons for this discrepancy, but other studies have noted that the types and frequencies of attacks vary from country to country.

U.S. companies are also more likely to experience the most expensive types of cyber attacks, such as malicious insiders, malicious code, and web-based incidents, the research suggests.

Despite having more to lose, some 42 percent of U.S. companies were unaware of cybercrime’s cost to their organizations, compared to 33 percent of global respondents, according to PWC.

Yet, overall U.S. companies appear to have a greater understanding of the risk of cybercrime than their global peers.

PWC notes that U.S. organizations’ perception of the risks of cybercrime exceeded the global average by 23 percent.

Also, 71 percent of U.S. respondents indicated their perception of the risks of cybercrime increased over the past 24 months, rising 10 percent since 2011.

Hat tip to CNBC.com which reports on this story here.

Some 5,128 executives from 99 countries responded to the survey, of which 50 percent were senior executives of their respective companies. Some 35 percent represented listed companies and 54 percent represented organizations with more than 1,000 employees.

PWC Survey: CEOs Confident on Revenue Growth

Global insurance industry CEOs are optimistic about growing revenue in 2013, despite ongoing volatility in the overall economy, according to PWC’s 16th Annual Global CEO Survey.

Some 90 percent of insurance industry leaders are at least reasonably confident about growing revenue this year and in the next three years, the survey found.

However, most CEOs see the prospects for the overall economy as tentative at best, with only 15 percent of insurance CEOs believing that it will improve over the next 12 months.

Nearly a quarter expect the economy to decline, though this is a much less pessimistic outlook than last year, when nearly half anticipated worse times ahead, according to PWC.

Other key takeaways from the survey:

— More than half of the CEOs are focused on organic growth to increase their bottom line, while 12 percent are focused on M&A

— Nearly 60 percent of CEOs are concerned about the shift in consumer spending and are seeking ways to enhance customer loyalty and retention (In response, nearly 90 percent are planning to change their strategies for managing customer growth)

— Almost 90 percent of insurance leaders plan to increase spending on technology to improve analytics and customer profiling capabilities

PWC’s findings are based on interviews with 92 insurance CEOs in 39 countries.