4 in 5 insurance CROs rank cyber as near-term priority

79% cite data issues as the biggest barrier to development.

Insurance risk leaders said that cyber threats are their near-term priority, with 80% saying so, due to digital hostilities and geopolitical instability.

The insurance landscape is currently being shaped by "NAVI" principles, or risks that are nonlinear, accelerated, volatile, and interconnected, according to EY and the Institute of International Finance’s third annual global insurance risk management survey.

In response, companies are moving beyond experimenting with AI to making it a permanent part of their operations. 

Currently, 62% of firms have established AI governance frameworks, and 55% have implemented formal policies for generative AI. 

Whilst these tools are expected to increase productivity, 79% of institutions cite poor data quality as the biggest obstacle to successful AI development.  

Operational changes are also visible in how insurers manage third-party relationships. 

Seventy-seven percent of these insurance CROs prioritise managing the cyber risks associated with vendors and external partners. 

This shift comes as insurance companies face a more complex environment where traditional patterns of risk no longer apply, particularly regarding natural catastrophes for non-life carriers and investment yields for life insurers.  

Despite the heavy investment in technology, staffing levels in risk departments are stabilising. 

Approximately 42% of firms expect no change in their full-time risk management staff over the next three years, up from 27% in the previous year. Instead of hiring more people, companies are focusing on "upskilling" existing staff.

The most sought-after qualities for modern risk professionals are now adaptability (66%) and digital acumen (55%) rather than traditional broad risk knowledge.  

Looking forward, the role of the CRO is becoming more central to business strategy. 

Insurers are increasingly using real-time data and automated control testing, which 37% of firms plan to enhance shortly.