Cybercrime tops the list of the most dangerous risks for insurers in Willis Re’s midyear review of issues likely to keep insurance executives up late at night.
Specifically, the most omnipresent cybersecurity problems to date are Meltdown and Spectre, two hardware vulnerabilities built into the chips of almost every server, computer and mobile device.
Not far behind is the threat of falling into the information technology gap. Most insurers surveyed by Willis have just completed, are in the middle of, or are planning a major IT systems overhaul. They report a concern surrounding the expense of constant updates and at the same time the risk of not being able to satisfy customer service expectations by falling behind on the latest upgrades.
Some of the other risks on the list include: Strategic direction and missed opportunities, particularly in homeowners insurance; pricing and product line profit; runaway frequency or severity of claims; and disruptive technology; and competition.