Top 6 Risks for Insurers in 2013

Regulatory/legislative changes and increasing competition are at the top of the list of major risks insurers are facing, according to the biannual "Aon Global Risk Management Survey" from Aon Risk Solutions.

The full survey identifies the top 10 risks as well as hidden risks facing organizations in a number of industries today. The collective top 10 risks included risks such as commodity price risk and cash flow/liquidity, which were not at the top of insurers' lists.

Results of the survey of risk managers, CROs, CFOs, treasurers and others point to a significant decline in risk readiness among many of the survey respondents and illustrate the importance of no longer evaluating risk in isolation but considering the relation of risks to establish and maintain a successful risk management program, according to Aon. It's important to look at how all of the risks connect to each other, said Stephen Cross, CEO of Aon Global Risk Consulting.

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6. Business interruption

While business interruptions typically conjure up the image of major disasters that create havoc and impact whole communities, such as hurricanes, earthquakes or terrorist attacks, one cannot ignore those occurring on a smaller scale that might not make headlines—a power outage or water main break in the immediate area, fire in a room of a building, a bomb threat, or a workplace violence incident.

Organizations must effectively address this risk by identifying all potential threats to their business and evaluating their mitigation options for each threat.


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