Mumbai: Insurers in India perceive managing change in industry as the top risk to their business, which is in sharp contrast to overall global results that cite regulation as a major risk, says a recent survey.
"Respondents from India perceive regulation as the least important risk and this could only be a reflection of the new reality where post the Foreign Direct Investment (FDI) changes, industry has accepted the new set of regulations as the 'new normal'," PwC India Director Anuraag Sunder said, quoting the survey 'Insurance Banana Skins 2015'.
He said domestic insurers are now more focused on 'change management', which is ranked as the top business risk.
"Fast paced changes on the ever-evolving customer side and increasing demand of digital interface is also a reflection of 'change management' that insurers would need to walk through," he said.
'Insurance Banana Skins 2015' survey was conducted by Centre for the Study of Financial Innovation (CFSI) and PwC, which polled over 800 insurance practitioners and industry observers in 54 countries (including India), to find out where they saw the greatest risks over the next 2-3 years.
The survey also revealed that the economic environment was also a lower order concern, with positivity about India's growth and inflation under control.
"Cluttered at the top are financial risks (exposure through long term liabilities and investment performance) and human capital risks (quality of management and human talent), signifying lack of confidence on the talent pool," Sunder added.
The report said as India's customers continue to adopt technology in a big way, adapting to their ever-evolving expectations, especially from a technology standpoint was high on the priority list of the respondents.
On the non-life side, the absence of any common data platform to make informed decisions was an area of concern, it added.
Technology was widely seen as the driving force behind new markets, changing customer demand, and facilitating competition from non-traditional entrants, it pointed out.
It said the concern raised is that the traditional insurance industry will be slow to grasp the opportunity and will end up facing a threat.
Developments such as digitisation, the Internet and social media are already profoundly influencing price and demand for insurance products, and the means customers use to interact with their insurance providers, it added.
