Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • January 2019
01

Business interruption ranked the joint top risk to companies in 2019

Open-access content Monday 21st January 2019 — updated 5.50pm, Wednesday 29th April 2020

Business interruption (BI) and cyber incidents are the top two threats facing companies around the world in 2019, a survey of insurance experts and risk managers has revealed.

2


Published in the Allianz Risk Barometer 2019, the findings show that natural catastrophes, legislation and regulation, and market developments complete the top five risks for this year.

The report highlights how the average BI property insurance claim now stands at $3.4m (£2.6m), with losses from the largest events running into the hundreds of millions or more.

Allianz said businesses also face a growing number of interruptions that do not involve physical damage, such as when retailers lost around $1.1bn following protests in France at the end of 2018.

"Disruptive risks can be physical, such as fire or storms, or virtual, such as an IT outage," Allianz Global Corporate & Specialty CEO, Chris Fischer Hirs, said.

"Companies need to plan for a wider range of disruptive scenarios and triggers, as this is where their big exposure lies in today's networked society."

The annual survey of 2,415 experts from 85 countries also found that fires, new technology, climate change, loss of reputation, and worker shortages are among the top 10 risks for 2019.

In the UK, the results show that changes to legislation and regulation, including concerns around Brexit, are the top risks facing companies this year, along with cyber threats.

For the first time ever, shortages of skilled workers are also in the top 10 risks for British firms, with this threat also featuring highly for businesses in the US, Canada and Australia.

Allianz deputy chief economist, Ludovic Subran, said competition is "fierce" for workers in data science or cyber risk as many of these jobs didn't exist 10 years ago.

"Even attractive salaries do not suffice, as the pool of recruits with the needed skill set is limited, and the urgency to onboard them does not allow for on-the-job training," he continued.

"A skilled workforce - and human capital more generally - has become the scarce resource of the digital economy," 

Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession  

This article appeared in our January 2019 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Insurers urged to offer discounts to climate-resilient companies

Insurance firms have been told to offer cheaper premiums to companies that are preparing for the impacts of climate change amid a growing frequency in extreme weather events.
Tuesday 22nd January 2019
Open-access content
2

Thousands of investors fall victim to pension scams

The UK government’s Insolvency Service has wound up 24 companies involved in pension scams since 2015, with 3,750 investors duped by fraudsters during that time.
Wednesday 23rd January 2019
Open-access content
2

'Major flaws' in cyber insurance policies identified

The UK’s cyber insurance market is “very immature” and “untested”, according to new research, with most of the policies available containing significant common flaws.
Friday 18th January 2019
Open-access content
2

UK accounts for almost a third of VC investment in Europe

Brexit fears did not stop the UK attracting $7.7bn (£6bn) of venture capital (VC) investment last year, almost a third of the record $24.4bn raised in Europe as a whole.
Friday 18th January 2019
Open-access content
2

Report reveals most desired qualities in actuarial consultants

Independent advice and thinking freely are two of the characteristics that UK pension schemes value most in actuarial consultants, a survey of 100 senior trustees has found.
Thursday 17th January 2019
Open-access content
2

New amendments proposed for IFRS 17

The International Accounting Standards Board (IASB) has agreed by a significant majority to discuss changing several key aspects of IFRS 17 insurance contracts.
Friday 25th January 2019
Open-access content

Latest from January 2019

Pension funds suffer biggest losses since financial crash

The average UK pension fund experienced its biggest loss since the financial crash last year, with less than one in ten generating positive investment returns.
Wednesday 30th January 2019
Open-access content

Investors urge fast food giants to root out climate risks

More than 80 investors with $6.4trn (£5trn) in assets under management have told six of the world’s largest fast food companies to urgently tackle climate and water risks in their supply chains.
Wednesday 30th January 2019
Open-access content
2

US life insurers missing out on $70bn in premiums

The average life insurance policyholder in the US is massively underinsured, new research has found, with firms potentially missing out on almost $70bn (£53bn) in annual premiums.
Tuesday 29th January 2019
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 01

Pension funds suffer biggest losses since financial crash

The average UK pension fund experienced its biggest loss since the financial crash last year, with less than one in ten generating positive investment returns.
Wednesday 30th January 2019
Open-access content

Investors urge fast food giants to root out climate risks

More than 80 investors with $6.4trn (£5trn) in assets under management have told six of the world’s largest fast food companies to urgently tackle climate and water risks in their supply chains.
Wednesday 30th January 2019
Open-access content
2

US life insurers missing out on $70bn in premiums

The average life insurance policyholder in the US is massively underinsured, new research has found, with firms potentially missing out on almost $70bn (£53bn) in annual premiums.
Tuesday 29th January 2019
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Investment Consultant

Scotland / Scotland, Edinburgh / London, England
Up to £70000.00 per annum
Reference
148689

Market Risk Capital Actuary/Quant

London (Central)
£65,000 - £115,000 plus bonus and package
Reference
148688

Experience Analysis Contractor

England
Negotiable
Reference
148687
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ