BANANA SKIN SURVEY 2013
Moments that matter – how values, culture and behaviour make a difference Angie Wong brings to attention the recent Insurance Banana Skin Survey 2013 that seems to indicate Malaysia’s starkly different response to global insurers in terms of regulation as an emerging risk in the industry since the aftermath of the global financial crisis. She also pointed out how capitalising on organisation’s adaptability and cultural elements will help an organisation innovate, adapt and meet is organisation’s goals for success.
Ayear ago to this month, Malaysia played host to the 26th East Asian Insurance Congress, which urged its members in the East Asia insurance community to be brave and work to transform with the ever-evolving market while heeding the call for action. This was done to encourage members to take advantage of the changes and the opportunities occurring around them. Yes – the future may be hard to predict, as insurers continue to grapple with tough new business, investment and regulatory environments that are emerging from the financial crisis. And with that similar thought in mind, the Centre for the Study of Financial Innovation based in New York, USA, in collaboration with PwC, launched the Insurance Banana Skin Survey in 2008 to examine the risks facing the global insurance industry at a time of considerable market uncertainty. The survey sought to identify those changes that appear most urgent to insurance practitioners and close observers of the insurance scene around the world. In its fourth year of survey, the biennial survey is aimed at senior executives in the industry. It explores the risks insurers face and their level of preparedness. This year, approximately 662 industry players from 54 countries participated in the survey, of which 14 respondents were from Malaysia. The 2013 Insurance Banana Skins Survey results highlighted the fact that the burden of regulation emerged as the top risk in the world rankings for the second year in a row. This response is perhaps not at all unsurprising, considering the influx of new regulatory initiatives experienced by the European market and in respective local jurisdictions. The continued poor investment climate, compounded by the difficult macro-economic climate, made it harder for insurers, particularly life insurers, to perform, This was featured highly in the list of challenges faced by the global market, followed by a marked concern over ensuring consumer interests. These were addressed due to past poor and questionable business practices.
Chart 1: Breakdown of respondents1