Global insurance execs rank cyber among biggest trends affecting industry
Insurers still using legacy systems could be more exposed to growing cyberthreats, Earnix noted in its 2023 industry trends report.
For 40% of global insurance company executives, cybersecurity risks are the biggest trend affecting their businesses, according to Earnix, which surveyed 400 executives from a range of departments, including C-level, IT, underwriting and product, at global insurance companies.
The survey results, Earnix noted, show that insurers realize more needs to be done to protect consumer data and comply with the growing list of data privacy regulations. This becomes even more pressing as the industry continues to grow into new digital channels, while grappling with an increase in cyberattacks.
Insurers still using legacy systems could be more exposed to growing cyberthreats, Earnix noted in its 2023 industry trends report.
“Replacing outdated IT infrastructure with more modern systems can help them address security gaps and stay a step ahead of the bad guys,” the report authors wrote.
Macroeconomic influences
While cyber was the most pressing issue globally, North American executives ranked macroeconomic changes, such as inflation and interest rate growt, as the biggest trend impacting the business, according to Earnix. Cyber risks were the second biggest trend impacting the business, according to North American insurance executives.
Around 40% of North American executives said macroeconomic changes were the biggest trend affecting the insurance industry, while 33% of European and Australian insurance executives said the same.
Earnix noted concerns among insurers for the changing macroeconomic environment are well-founded, as these shifts can result in less demand, rate increases, new cost and competitive pressures, more regulations and the need to develop business models to meet the changing market.
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