Aon Risks solutions hosted a panel event which saw financial industry practitioners, representatives and regulatory experts together to predict the big issues or mega trends of business operations in the financial industry.
Regulation, technology, corruption, reputation, talent and digital disruption were identified as common themes in risk management strategies, as identified by those who are seeing companies trying to continuously overcome these obstacles.
The panel represented a range of perspectives from that of public affair specialists to the views of legal representatives but regulatory pressure formed part of the rhetoric they all shared.
Financial services lawyer at K&L Gates Andrew Massey explained what businesses had to contend with in trying to keep up to date with the latest developments,
“It goes beyond the risk that there is a breach in your organisation; it’s the risks associated with keeping abreast of the tsunami of regulation that’s out there; this never-ending wave of new developments that legal, compliance and business personnel need to be aware of.”
Nick Triggs, head of international corporate finance at Aon Benfield, noted that strict regulation was also affecting mergers and acquisitions, with transactions between well-established buyers coming under close scrutiny.
Cyber crime proved once again to be a pressing issue, and law expert Ed Smerdon of Segwick noted a sharp rise in cyber-related claims. On the flip-side it was also agreed that insurance businesses are slow to adopt the digital model and in doing so are not keeping up with their customers.
“In insurance, we claim we are listening to customers, but it is still quite a traditional model. We are not finding out what customers really want and need from us,” said Andrew Myhill, UK public affairs manager for Zurich Insurance.
There were concerns on attention being turned away from banking and onto insurance with a focus on reputation as Myhill explained,
“The banking sector has certainly had its moment in the political sun – and I think insurance is next. Certainly the mood is here in the UK government that the microscope now needs to shift onto how the insurance sector operates and how we can regulate it better.”
Complexities in hiring and retaining talent and maintaining attractive working environments, was another challenge touched upon by Alexander Verweij, head of talent, rewards and performance for UK and Europe at Aon Hewitt,
“The talent question is only getting more complex; with generational differences, with the globalisation of the workforce; it’s a very challenging time,” he said.
“How do you create a culture in which people take pride in differentiating themselves in a positive way?”
Here are just some of the risks that if not already causing problems for businesses nationwide, may well do in the future. The important question for any business to ask itself if how best to manage them.
What are the challenges that face your business right now? See if we at Schofield Insurance Brokers can help you, give us a call on 0113 2500377.