Conduct risk puts 54% of insurance CROs on high alert | Asian Business Review
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Conduct risk puts 54% of insurance CROs on high alert

38% of APAC insurers are implementing AI tools, higher than the global average of 22%.

The Asia Pacific's insurance Chief Risk Officers (CROs) are grappling with a unique set of challenges, with conduct risk, cybersecurity, and business model changes topping their list of concerns. 

Conduct risk, in particular, is viewed as the most significant threat by 54% of Asia-Pacific CROs, compared to 19% globally, reflecting the regulatory landscape's influence, survey results by EY and the Institute of International Finance (IIF) showed.

“CROs globally face challenges that are broadly consistent, yet the emphasis and prioritisation of specific risks differ across regions. With conduct-related regulations established in several markets in the region, including Australia, Hong Kong, Malaysia and Singapore, it makes sense for CROs in Asia-Pacific to make it a big focus area.” Tze Ping Chng, EY Asia-Pacific Consulting Insurance Sector Leader, said in a media release.

In terms of AI adoption, APAC insurers are ahead of the curve, with 38% already implementing automation and advanced analytics, including AI and machine learning. 

ALSO READ: MSIG Asia’s CEO shares approach to risk management evolution

These technologies are leveraged for fraud monitoring, risk assessments, and internal reporting, underscoring the region's proactive approach to innovation and risk management.

Looking ahead, CROs across the globe anticipate geopolitical and environmental risks to dominate the landscape in the next three years. 

In the region, concerns around geopolitical risks, environmental risks, and cybersecurity are particularly pronounced, highlighting the region's unique challenges and the need for a robust risk management strategy.

The survey, encompassing 68 insurance carriers across 15 countries, sheds light on the evolving risk landscape and regional disparities, offering insights into the strategic priorities of insurance CROs in APAC and beyond.

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