Financial institutions and their directors have to navigate a rapidly changing world marked by new and emerging risks driven by cyber exposures based on the sector’s reliance on technology, a growing burden of compliance, and the turbulence of COVID-19, according to a new report, “Financial Services Risk Trends: An Insurer’s Perspective,” from Allianz Global Corporate & Specialty (AGCS). At the same time, the behavior and culture of financial institutions is under growing scrutiny from a wide range of stakeholders in areas such as sustainability, employment practices, diversity and inclusion and executive pay.
- COVID-19 may drive market corrections and insolvencies – which could impact financial institutions’ balance sheets, increase exposures for directors and result in litigation.
- AGCS analysis of $1 billion of insurance industry claims show cyber incidents, including crime, is the top cause of loss. Insurers see a rising number of losses from outages or privacy breaches with third-party service providers a potential weak link.
- Compliance issues are already one of the biggest drivers of claims, and the burden is growing – particularly around ESG factors and climate change.
Complete the form below to read the full report.