Chief risk officers (CROs) in the Asia-Pacific insurance sector are facing new challenges and changing their roles to meet them. A recent survey by EY and the Institute of International Finance (IIF) shows that these leaders are now placing greater importance on risk management as they deal with economic changes, regulatory updates, and increasing digital risks.
The survey highlights that operational resilience is now a key focus for insurers. This means they are working hard to ensure that their operations can continue smoothly, even when faced with disruptions. As businesses rely more on digital tools and third-party services, maintaining control over their operations has become essential.
Cybersecurity has emerged as the top concern for CROs in the region, with 62% of respondents highlighting it as a priority for the coming year. This concern stems from rising geopolitical tensions, a surge in cyberattacks, and the growing amount of sensitive customer data that insurers handle.
Conduct risk is another major issue, with 46% of CROs citing it as a significant priority. This is particularly relevant in countries like Australia, Hong Kong, and Indonesia, where regulators are increasingly focused on fairness and transparency in business practices.
Operational resilience is also gaining attention among CROs, with 31% ranking it among their top three concerns. This is partly due to compliance demands, such as Australia’s new CPS 230 standards, and the need to ensure business continuity in a complex operational environment.
Stacey Hooper, EY’s Oceania insurance leader, noted that the risk landscape for Australian insurers is particularly challenging. Insurers must contend with cybersecurity threats, economic uncertainty, and strict regulatory oversight, all while striving for greater operational resilience.
To tackle these challenges, insurers are investing in new technologies and enhancing their workforce skills. They are focusing on artificial intelligence, data analysis, and automation to improve their risk management processes. Additionally, there is a growing need for professionals skilled in cybersecurity and data science, as well as those who possess strong leadership and business skills.
Looking ahead, CROs will need to bridge the gap between technical risk insights and business strategies. As they prepare for future risks, they must also seize new opportunities. The report suggests that over the next few years, concerns about cybersecurity and geopolitical instability will remain prominent, alongside the need to adapt to regulatory changes and workforce challenges.
In summary, CROs in the Asia-Pacific insurance industry are redefining their roles amid evolving risks. By focusing on operational resilience, cybersecurity, and talent development, they aim to protect their organizations and foster growth in a rapidly changing environment.