Regulation Is a Risk in the Insurance
Survey Pricewaterhouse Coopers
Pricewaterhouse Coopers (PwC) Indonesia in its latest survey states, the insurance executive in Indonesia considers regulation is the biggest risk facing the insurance industry in the country.
This risk is at least two to three years ahead. In addition to regulation, another major risk facing the insurance industry, among others, market conditions, macroeconomic conditions, human resources, and distribution channels.
"The survey also highlights there are many companies that still need to continue to develop and strengthen risk management functions as well as their strategies to deal with changes in terms of digitization and the impact of technology is very dynamic and is continuing," said David Wake, Financial Services Leader PwC Indonesia on Indonesia Insurance Executive Forum event in 2016 at the Fairmont Hotel in Jakarta, Tuesday (05/31/2016).
According to respondents, the biggest risk facing the insurance industry Indonesia among other regulations, market conditions, macroeconomic, human resources, distribution channels, and investment performance.
Another risk is the interest rate, product innovation, change management, and natural disasters. Meanwhile, the biggest risk in the global insurance industry as a comparison is regulatory, macroeconomic, interest rate risk Siber, investment performance, and change management.
Another risk is a guaranteed product, distribution channels, natural disasters, and the quality of risk management.
Consistent with global trends, there are concerns about regulation and a high estimate of the rising cost of legal and compliance.
Notably, respondents expressed the need for clarity in terms of taxation. However, cyber risks not included in the list of 10 greatest risk insurance industry in Indonesia.
In fact, digital transformation is underway in this sector, the insurance company may underestimate the challenges to be faced in the future.
In the past, insurance companies do not face the cyber attack as much as large corporations and financial institutions.
The possibility of changes in the methods and motivation to carry out attacks in part because criminals are aware of the vulnerability of cyber insurance industry.
"And also, the potential for identity theft with its customers' personal important data in the data industry," said Handikin Setiawan, Director of PwC Indonesia Cyber Security on the same occasion.
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