2009 Insurance Banana Skins

The insurance industry’s perception of major risks has undergone a near total change amid the volatile financial climate, according to the results of the second Insurance Banana Skins survey from London-based think tank Center for the Study of Financial Innovation (CSFI) and PricewaterhouseCoopers. Investment performance, equity markets and capital availability now head the list of insurance banana skins after not even making the top 10 in the 2007 survey. Just 18 months ago, regulation and natural catastrophes were the top concerns of insurers. The report notes that for life insurers, investment returns are the major threat, while for non-life insurers, capacity and pricing are the big issues along with the problems that tend to come with a macro-economic slowdown – notably a surge in claims and an increase in fraud. This year’s top 10 risks also include: risk management techniques; reinsurance security, complex instruments and interest rates. The updated survey is based on 403 responses from 39 countries.  

Leave a Reply

Your email address will not be published. Required fields are marked *