{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.title}}
{{item.text}}
Now on its 9th edition, this survey describes the most urgent risks, or "Banana Skins", facing the global insurance industry in the latter half of 2023 as seen by a sample of 589 practitioners and close observers, in 39 territories.
Zoom into the top four Banana Skins in Belgium
As we venture into this exploration of the Belgian insurance industry's pressing concerns, unveiled by the Banana Skin survey, we meticulously dissected each of the four most significant challenges for Belgian insurers.
These risks, known as ‘Banana Skins’, have been identified and ranked by Belgian insurers themselves: climate risk, regulation, human talent, and cyber crime.
Belgium's insurance sector is grappling with the escalating impact of climate change. As natural disasters become more frequent and more severe, insurance companies face a surge in claims, uncertain pricing structures, and asset devaluation. The insurability of certain risks and regions is under question, potentially jeopardising business continuity. Additionally, the industry must address concerns about taking insufficient action to avoid the costs associated with a disorderly transition to a net-zero economy.
Regulatory challenges loom large in the Belgian insurance landscape, with a multitude of rules and regulations causing compliance costs and distractions. This regulatory burden stifles innovation, product development, and competition, and ultimately affects the customer experience. Insurers are also mindful of potential reputational risks, particularly in terms of meeting ESG standards, and they struggle to attract new talent due to the complexity and unattractiveness of compliance.
The Belgian insurance industry faces a critical talent shortage, making it difficult to attract and retain skilled professionals, particularly in areas like IT, data & analytics, legal, and finance. High turnover rates are eroding institutional knowledge and skills, while understanding and motivating the younger workforce present a significant challenge. Contradictions between pay expectations and cost-cutting measures further exacerbate talent acquisition issues, and the hybrid work model poses unique challenges for training young staff in the intricacies of the insurance sector as well as in generating loyalty.
Cybersecurity remains a top concern in Belgium's insurance sector. Cyberattacks not only jeopardise business continuity but also pose significant risks in terms of data theft, especially within the realm of health insurance. The threat landscape is diverse, with attackers leveraging advanced technologies like artificial intelligence. Additionally, geopolitical factors can influence the nature and intensity of cyber threats, making it increasingly difficult and expensive for insurance companies to invest in robust cyber defences.
Insurance Banana Skins 2023
What are the top risks facing the Insurance industry?
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
Contact us
Connect with PwC Belgium
