1、FERMA European Risk Manager Survey Report2022In partnership withWe are pleased to present the results of the 2022 European Risk Manager Survey.The survey has now taken place every other year for 20 years.It represents the most comprehensive picture of views of professional risk managers across Europ

2、e.Publication of the 2020 edition took place close to the height of the pandemic.The exceptional circumstances that prevailed then have evolved,but they remain with us.The pandemic is not yet under control and we feel its impact on our economies,Russia is continuing its war against Ukraine and infla

3、tion is rising.The results of the 2022 survey reinforce our belief that we are in a period of transition.Risk discussions at Board/top management levels are more frequent,and the risk managers involvement in corporate strategy and sustainability has consolidated.Two-thirds of risk managers have eith

4、er direct access to the CEO or via their line manager.Resilience is more than ever a priority for the top management,and the role of the risk manager is evolving as a consequence.We see risk managers taking additional responsibilities,especially for business continuity and crisis management.In terms

5、 of transition to a digital and green Europe,collaboration between risk management and IT and information security has consolidated over the past few years and is now a normal aspect of their work.Risk managers are also increasingly involved in sustainability matters and environmental,social and gov

6、ernance(ESG)related risks.The ability of organisations to transfer risk remains a concern for corporate insurance buyers in the context of a hard insurance market.Risk managers are continuing to develop alternative strategies,including expanding the use of captive insurance.A significant number beli

7、eve that some operations and locations could become uninsurable in future.We believe that the results of this 2022 survey show the transition of the risk manager ever more towards the role of the risk conductor for the organisation,consolidating information from other risk-related functions to give

8、a clear and comprehensive view to the top management.These are themes that we will continue to explore at the 2022 FERMA Forum and in our next survey in 2024.Thank you for all our respondents and to the 20 risk managers who also took part in the roundtables we organised to analyse the results.Dirk W

9、egener,President of FERMACharlotte Hedemark Hancke,Chairman of the 2022 FERMA Survey Committee and Board Member of FERMARami Feghali,Partner,Head of Risk&Regulatory,PwC EMEAFranoise Berg,Partner,Risk&Regulatory,PwC FranceFERMA European Risk Manager Survey Report-2022|3ForewordKey findings64%of risk

10、managers have a qualification in risk management,The main risk differs depending on the time horizonthe same percentage as in 2020Survey respondents1/3FERMA European Risk Manager Survey Report-2022|5 4|FERMA European Risk Manager Survey Report-2022of risk managers are womenhave more than 10 years ex

11、periencework in large listed or privately held organisationsof respondents are solely dedicated to enterprise risk management(ERM)activities,1/3 perform both ERM and insurance management(IM)activities and 1/3 are specifically dedicated to IM activities.In 2022,the development of operational skills i

12、s ranked as the first contribution of certification,closely followed by internal recognition and legitimacy,ranked first in 2020,and improvement in employability.Cyber threats remain the 1st concern in 2022 for risk managers.Top 5 risks within the next 12 months Cyber threatsSupply chain or distribu

13、tion failureGeopolitical uncertaintiesUncertain economic growthOver-regulationTop 3 risks within the next 3 yearsChanging customer behaviourCyber threatsUncertain economic growthTop 3 risks within the next 10 yearsClimate change and environmental damageChanging customer behaviourNatural disasterDo y

14、ou have a specific qualification in risk and/or insurance management?YesNo64%36%Sector of activity57%Industry25%Financial services 14%Services4%Public sector32%65%74%“Supply chain failure”and“geopolitical uncertainties”enter the top 5 short term risks replacing“data fraud”and“availability of key ski

15、lls”,in the post pandemic crisis context and Russian-Ukrainian conflict.Changing customer behaviour enters the top 3 risks within the next 3 years directly on pole position.Long term risks remain the same as 2020.Post pandemic,Ukrainian war,and successive extreme weather events The 2020 survey colle

16、cted data before the massive spread of the coronavirus in Europe.The 2022 survey was launched on the brink of the war in Ukraine.The extent of the crisis in all sectors led to new routines that modify the role and interactions of the risk manager with all the actors in the organisation,as first,seco

17、nd or third line of defence.The intensity of the Ukrainian war and the political uncertainties the world is facing bring to the fore the need to better assess risk regarding strategy and geopolitcal changes.In addition,as the occurrence of extreme natural events is increasing at fast pace,organisati

18、ons need to develop their capacities with regards to climate change risks and more globally for environmental and demographic risks.The risk manager is more than ever working as a business partner.Key findings35%36%32%32%30%15%24%12%9%5%Risk managers think open access to aggregated and anonymised hi

19、storical claims and loss data on large risks would improve risk management practices Type of role played in regard to ESGRisk managers involvement in the management of risks arising from emerging technologies did not change in 2 yearsHow do you deal with risks arising from emerging technologies?Almo

20、st all risk managers believe that access to historical claims and loss data on large risks would be useful in the development and improvement of risk management practices;44%say they agree totally or to a large extent.Identification and assessment of risks prior to adoption of new technologies by th

21、e businessTo some extentIdentification and assessment of emerging technologies used by the businessTo a large extentAnalysis and remediation of any insurance coverage gapsTotallyNo specific action To a small extent None of the aboveNot at allA potential for further development of the use of technolo

22、gy?Transitioning towards sustainability has become a focal point and integrating ESGrisks is key to achieving this targetAs the digital transformation in organisations continues at a fast pace,risk managers use of digital tools advances more gradually.The technologies used in risk management remain

23、largely unchanged over the years:62%data analysis,54%web-based application,34%data visualisation,and 20%process automation.AI,Internet of things,drones and blockchain remain little used.Among the main obstacles mentioned by risk managers to greater use of digital tools are the significant investment

24、s they represent for the function(45%)and the lack of perceived added value for the function(39%).A strong and stable relationship with the IT and information security teams Risk managers interactions with IT and information security teamsInformation securityUnder the risk managers responsibilityReg

25、ular/close collaboration based on a clear mandateOccasionnal collaborationNo relationship/involvement8%52%32%8%8%49%38%6%56%54%of risk managers say they are playing/are planning to play a specific role regarding ESG-related risks(40%in 2020)of the risk managers organisations identify the climate cha

26、nge risk on the risk map,and 46%are working on transitional climate change risk(regulations,market,technology and reputational).Only 15%do not work on this risk.Regarding the type of role played in relation to ESG,risk managers mainly contribute to the analysis and mapping of ESG risks(70%).They are

27、 involved in the risk mitigation(63%),prevention and adaptation measures(58%)and regulatory reporting(54%).Many risk managers are facing challenges integrating ESG-related into the ERM framework,facing notably difficulties of quantifying and qualifying sustainability risks(respectively 54%and 34%),a

28、nd the limited knowledge of sustainability risks(29%).While the topic is becoming a major concern,not all risk managers yet feel sufficiently equipped to address it.Analysis and mapping of ESG risksRisk mitigationPrevention and adaptation measuresRegulatory reporting01040205030Fully responsibleContr

29、ibuteValidateInformedNot informedNoYesPlan toIs the risk manager playing a specific role regarding ESG-related risks?21%35%44%ITFERMA European Risk Manager Survey Report-2022|7 6|FERMA European Risk Manager Survey Report-2022of risk managers implemented innovative technologies to improve the risk re

30、porting process.67%Key findingsTougher insurance market conditions lead to alternative strategiesRisk managers are adapting their insurance strategy over the next 2 years focusing on:Risk retention 73%Use of an existing captive 35%Use of alternative risk transfer vehicle 29%Creation of a captive ins

31、urance/re-insurance company 12%Reasons for these changes Hard marketDecision to self-insure more/to retain more risksEvolution of the risk profile of the companyMore competitive prices with another providerEconomic climate81%41%43%18%16%Consequently,risk managers have adapted their insurance strateg

32、y over the past 12 months consisting of:Changing the insurance buying patterns(review needs,limits)66%Strengthening loss prevention activity 40%Negotiating long-term agreement or roll-overs 31%The interest in captives has gone up significantly over the past 4 years.In addition,41%of the respondents

33、believe that some of their companys activities or locations will become uninsurable in the future,illustrating the growing concern about insuring risks that are seen as systemic(e.g.cyber,climate change).15%in 2018to47%in 2022FERMA European Risk Manager Survey Report-2022|9 8|FERMA European Risk Man

34、ager Survey Report-2022ContentsForeword 3Key findings 4Methodology and survey respondents 10Methodology 10Profile of survey respondents 11Qualification and certification in risk management 16How do risk managers see the risk landscape in 2022?18Top 5 critical threats to the organisations growth pros

35、pects within the next 12 months 8Top 15 critical threats to the organisations growth prospects within the next 12 months 20Part I:Evolution of the risk managers position within the organisation and involvement in corporate strategy 24Levels of interactions with the 3 Lines of Defence 25The risk mana

36、gers presence at a strategic level of the organisation 28Risk appetite within the organisation 30Part II:The risk managers contribution to sustainability 29Part III:The role of the risk manager in the digital transformation 38Transition towards more digital risk management practices continues 38Risk

37、 management contributes to the digital transformation of organisations 41Access to aggregated and anonymised historical claims and loss data on large risks improves risk management practices 42Part IV:Insurance market conditions drive alternative solutions for risk management 44Tougher insurance mar

38、ket conditions are still the risk managers top concern 44Captives are confirmed as an attractive strategy 47of risk managers have observed a reduction in cyber risk coverage in the last years61%of risk managers organisations own or share a captive(stable from 2020)37.5%Results show the triple crunch

39、 that risk managers face in buying insurance protection:are heavily impacted or face a major impact:in terms of increase in premium in terms of reduction in capacity in terms of limitations and exclusions on specific risks 78%71%62%The data in this report were collected from an anonymous web-based s

40、urvey distributed through FERMAs 22 member associations and the PwC European network between January and March 2022.Responses were received from 556 respondents in 27 countries aggregated into 3 clusters:The dominance of Western European responses(72%)limited the ability to draw conclusions based on

41、 geography.The survey included 53 questions divided into 6 categories:European Risk Manager Profile(16 questions)Insurance Management and Captives(10 questions)Risk management and Strategy(11 questions)Risk management and Sustainable Economy(4 questions)Risk management and Innovation(7 questions)Ris

42、k management and Other Lines of Defence(5 questions)Some questions were triggered by the answers to others.Thus,the number of respondents can vary from one question to another.In addition,some questions allowed multiple choices,so the responses may add up to more than 100%in some cases.This year,to

43、better understand and illustrate the answers collected via the survey,workshops were organised with 18 risk managers who responded to the survey.The report comprises a detailed description of the survey respondents,a summary of how they saw risks in 2022 post Covid-19 crisis,an analysis of answers t

44、o the sets of questions listed and 8 country files summarising the data per country or per cluster.Some countries were grouped in clusters when the number of respondents was not significant enough.The UK is not included in any country file as the number of respondents is not representative(1%).Benel

45、ux(Belgium,Netherlands,Luxembourg:18%of respondents)Central&Eastern Europe(Austria,Bulgaria,Croatia,Czech Republic,Hungary,Lithuania,Russia and Slovenia:7%of respondents)France(12%of respondents,including Monaco)Germany(10%of respondents)Italy(9%of respondents)Mediterranean countries(Cyprus,Greece,M

46、alta,Portugal,Spain,Turkey:18%of respondents)Nordic countries(Denmark,Finland,Norway,Sweden,Iceland:20%of respondents)Switzerland(5%of respondents)|Methodology|Profile of survey respondentsDistribution by sector of activityIndustryFinancial servicesServicesPublic sector57%25%14%4%Sectors and types o

47、f organisationFERMA European Risk Manager Survey Report-2022|11 10|FERMA European Risk Manager Survey Report-2022Methodology and survey respondentsRespondents by regionWestern EuropeCentral and Eastern EuropeNorthern Europe20%8%Western Europe:Belgium,Cyprus,France,Germany,Greece,Italy,Luxembourg,Mal

48、ta,Netherlands,Portugal,Spain,Switzerland,UK Central and Eastern Europe:Austria,Bulgaria,Croatia,Czech Republic,Hungary,Lithuania,Russia,Slovenia,Turkey Northern Europe:Denmark,Finland,Iceland,Norway,Sweden72%Risk managers responsibilitiesActivities under the responsibility of.Organisation typeListe

49、d entityPublic entityNot for profit organisationPrivately held entityBranch of a listed entityEntity owned by venture capitalistsOrganisation size Enterprise risk management(ERM)profile:oriented towards overall risk management of the organisation.Business risks are identified,analysed,treated and re

50、duced.Insurance management(IM)profile:oriented towards insurable risks,including loss prevention and risk transfer.Mixed ERM/IM profiles:focused on insurance,loss prevention and wider risk management issues.Some of the survey questions are specifically addressed to one profile,so the answers are rep

51、resentative of that profile and the related risk management activities.Both ERM and IM teams are mainly composed of 2 to 3 full time equivalent staff(FTE),respectively 41%and 39%.Then,31%of ERM teams have 1 full time member of staff,while 26%of IM teams have 4 to 10 FTE staff.Most survey respondents

52、(59%)have responsibilities beyond risk and insurance management.18%oversee business continuity/crisis management,15%compliance and 10%internal control.ERM:the scope of activities has evolved towards an increased strategic support to the organisation.The development of risk culture is in first place

53、this year among the risk managers activities,closely followed by the development of risk maps,which was second 2 years ago.The alignment and integration of risk management as part of business strategy moved from the 5th place to the 3rd,with 75%in 2022 compared to 67%in 2020.The definition of the ri

54、sk appetite went up from the 6th to the 5th position(57%to 64%).This illustrates the movement of the risk managers toward a more strategic position within the organisation.Combined ERM/IM profiles(70%)and ERM profiles(68%)tend to have responsibilities in addition to risk and insurance management,not

55、ably in business continuity,while 59%of IM profiles do not have other responsibilities.Risk managers are mainly working at the corporate level(head office)of their organisations(79%),while 13%work at a national or country level.Only 8%are working at the division or regional level.3%4%8%80%8%12%11%41

56、%33%ERMIMERM/IMTotalWestern EuropeCentral and Eastern EuropeNorthern Europe26%40%34%24%16%60%34%44%22%28%39%33%Three profiles of responsibilityThe respondents include mainly risk managers from large(listed or privately held)organisations.In small and medium size companies,risk management responsibil

57、ities are often covered by the CFO or legal officer.FERMA European Risk Manager Survey Report-2022|13 12|FERMA European Risk Manager Survey Report-202241%8%15%15%10%10%7%6%5%5%5%5%4%5%3%1.No2.Business continuity/Crisis management3.Compliance4.Other5.Internal Control6.Operations

58、7.Finance8.Internal Audit9.Security10.Quality11.Health and Safety12.Legal13.General/Company secretary14.IT15.TreasuryResponsibilities beyond risk and/or insurance management Activities under the ERM risk manager responsibility in 2022Large (250 staff or 50M turnover)Medium (250 staff or 50M turnover

59、)Small (50 staff or As risk managers awareness and competencies in relation with ESG matters grew during the past 2 years,the biggest challenge is now a technical one to define and measure the risks.It should be noted that as disclosure and transparency expectations are rapidly growing,there is a cl

60、ear need for more precise assessment of companies exposure to sustainability risks.Climate risk:A growing focus for risk managers in collaboration with specialised teams in the organisation Today,climate risk is part of most risk assessments(54%),and dedicated approaches are being developed:Despite

61、the work being done,28%of risk managers still say that climate risk lacks management attention.Climate risk is the number one critical threat for organizations on a 10-year projection while it ranks respectively 13th and 8th at short and medium term.As pointed out by a risk manager during the worksh

62、ops:“In the short-term climate change is dealt with as a transition matter and in some instances as an opportunity for developing new businesses,but should the organisations fail to address it,it will turn into a critical risk”.Another risk manager also commented during the workshop:“Climate risk is

63、 more on the agenda than the results indicate.Indeed,when dealing with short term supply chain risks(ranked 2nd in the short term)some organisations(e.g.in the food industry)are already dealing with the impacts of climate risk.”We expect the dialogue on climate risk to continue and strengthen,suppor

64、ted by detailed risk analyses.Simple versus double materialityRaising expectations for companies to act with responsibility and to care for the present and future society brings new challenges for enterprise risk management.There is an international debate on simple versus double materiality.Would i

65、t be sufficient to consider risks only for their impact on a company-financial materiality?Or is there a need to integrate consequences of risks on the environment and stakeholders of the company-impact materiality?Different voices and trends disagree on that principle,with an EU position clearly su

66、pporting double materiality and consideration of companies impact on environment,people and broadly society.Therefore,top management should be aware of all the potential risks the business model may have on its ecosystem and ensure appropriate resources are in place to actively manage these risks an

67、d limit their associated impacts.With this in mind,quantitative and qualitative data on sustainability risks will probably remain at the top of the challenges for risk manager for some time.46%1/3of risk managers say that they work on transitional riskssay they work on climate scenarios and quantifi

68、cation of physical risks (respectively 33%and 31%).How do organisations work on climate risks?Identified on the risk mapWork on transitional risks(regulation,market,technology and reputational)Work on various scenarios for climate change risks(based on GIEC or other)Quantify financial impact of phys

69、ical climate change risksDo not work on climate change riskOther54%46%33%31%15%4%20%8%8%9%9%6%12%12%50%46%50%54%18%27%27%24%3%13%3%1%Analysis and mapping of ESG risksNon-financial/corporate sustainability reporting(NFRD/CSRD)Prevention and adaptation measuresRisk mitigationContribute Not informedInf

70、ormedFully responsibleValidateUp-scaling competencies on ESG issuesIn 2022,the proportion of respondents citing lack of knowledge as a constraint in participating on ESG matters fell to 29%from 70%in 2020.This positive development can be explained by a greater contribution of the risk manager in ESG

71、-related matters.They contribute to:FERMA European Risk Manager Survey Report-2022|35 34|FERMA European Risk Manager Survey Report-2022Part.IIIOver the last 2 years,the pandemic accelerated the transition to digital,for example,with the need for remote working.However,digitalisation and tools implem

72、entation for the risk management function are developing more gradually.The technologies used today are mainly like the ones from 2020,and obstacles to invest more in them remain.73%of the risk managers interviewed use at least one of 3 top technologies.ERM use more process automation than other pro

73、files(+6%)and no blockchain.IM use more web-based applications and drones than other profiles(respectively+14%and+7%).Most risk managers continue to use locally based IT tools,such as software for governance,risk management,and compliance.The main applications are reporting activities such as risk r

74、egisters,risk mapping,dashboards and dashboard analysis.New technologies such as blockchain,Internet of things and drones,had been growing in previous years but experienced a small decreased compared to 2020.Compared to 2020,the only task that remains within the Top 3 is interactive risk mapping vis

75、ualisation.Continuous monitoring using risk indicators and continuous monitoring using action plan moved from the Top 3 to 4th and 5th positions respectively.Risk reporting process and scenario analysis reached the Top 3.To develop resilience to crises,organisations need to anticipate better the ris

76、ks and the way they might occur.Scenario planning and analysis allow them to foresee how events could occur and ensure appropriate options exist to ensure business continuity.Risk reporting on the process has been reinforced during these last 2 years and dominates the activities of risk managers,and

77、 is where digitalisation is growing most strongly.The use of new technologies allows organisations to monitor,anticipate and help the top management to take decisions.It provides a view on the present and a view to the future in management cockpit.The use of data analysis increased by 9%,while web-b

78、ased applications decreased by 4%and process automation by 8%.Other use of technologies such as data visualisation,artificial intelligence(AI),Internet of things,drones or blockchain is stable.|Transition towards more digital risk management practices continuesTechnologies used to perform ERM/IM act

79、ivitiesThe purpose of these technologies in the risk management performanceData analysis technologiesWeb based applicationsData visualisation technologiesProcess automation technologiesOtherArtificial IntelligenceInternet of thingsDronesBlockchain62%54%34%20%10%9%9%7%2%“No major change in terms of d

80、igitalisation was observed,and the focus was drawn on the first line of defence to increase the efficiency of operational processes.Risk managers have been working more with data analysis but did not make any use or implementation of new tools.”Quote from a risk manager from workshopTechnologies hav

81、e been implemented in multiple tasks and evolved in the past years:Risk reporting processInteractive risk mapping visualisationScenario analysisContinuous monitoring using risk indicators dashboardContinuous monitoring using action plan dashboardRisk analysis,audits and robot controlsClaim processin

82、gOtherProof of concept67%33%31%27%27%26%21%8%6%The role of the risk manager in the digital transformation FERMA European Risk Manager Survey Report-2022|39 38|FERMA European Risk Manager Survey Report-2022Data visualisation is the third most used technology,little changed since 2020 with 34%of respo

83、ndents.Data visualisation is mostly used for the following purposes:1.Interactive risk mapping visualisation 33%2.Continuous monitoring using risk indicators dashboard 27%3.Continuous monitoring using action plan dashboard 27%The development of the use of data is slower than widely predictedRisk man

84、agers face obstacles,gradually diminishing,that limit their ability to take full advantage of digital transformation.The 2 most important of these obstacles are:-the heavy investment it represents for the function(for 45%of the respondents versus 55%in 2020),-the lack of perception of the added valu

85、e for the function(for 39%versus 52%in 2020).“The obstacles are not about the financial aspects,but rather the time to invest in such projects and the perceived benefits.Risk managers are today not convinced about the use of technology to perform their activities as they can go faster manually than

86、using information systems.”Quote from a risk manager from workshopThis can explain the high percentage of respondents highlighting the lack of added value.Today,the benefits do not outweigh the costs.They depend on the quality of the data integrated into the system,and risk managers need a customise

87、d solution.Therefore,a successful project requires the investment of time.If such a project is transversal to the company and partially pushed by regulation(e.g.CSRD,taxonomy),investment is easier to decide.Other obstacles remain and concern about 20%of risk managers:the low maturity of organisation

88、s,the internal reluctance to change,the lack of access to data and the lack of skills within the function.However,on this last obstacle,access to technology skills grew within the function and remains internal in 79%of the cases.Technology skills access32%28%16%11%10%Internal skills within the risk

89、management team Skills whithin the IT department Central corporate team supportSkills provided by an external service provider No technology skills“Digital tools are becoming a must but what you find on the market in the field of risk management is not adapted because it is a standard product.We do

90、not need a one size fits all solution.We need a customised solution.Also,it requires a lot of time and money to develop a solution that brings value,and it is difficult to find a good partner.Top management is not prepared yet to make this investment in risk management.Successful experiences observe

91、d:either the solution has been developed internally or they have been using a tool for a long time.”Quote from a risk manager from the webinarWhile risk managers are working on their own functions digitalisation,they contribute to dealing with the risks arising from emerging technologies used or lik

92、ely to be used within the organisation.Their involvement remains stable on the analysis and remediation of any insurance gaps,and slightly decreases by 7%on the identification and assessment of emerging technologies used by the business.Helping organisations to limit their exposures from new initiat

93、ives before adoption also slightly decreased by 2%even though cyber,data,and digital threats remain in the main concerns.We could explain this evolution as evidence that the IT team is more trained and equipped by the risk manager,and therefore more autonomous and able to produce its own risk analys

94、is before launching a new tool.|Risk management contributes to the digital transformation of organisationsHow do you deal with risks arising from emerging technologies?Interaction of risk managers with IT and information security teamsIdentification and assessment of risks prior to adoption of new t

95、echnologies by the businessIdentification and assessment of emerging technologies used by the businessNo specific actionAnalysis and remediation of any insurance coverage gapsNone of the above35%32%30%24%9%Risk managers maintain a high level of collaboration with IT,closer by 6%in 2022(49%versus 43%

96、in 2020),and with information security teams(52%in 2022 versus 45%in 2020).“The collaboration between the IT and the risk manager is growing and becoming tighter,helping the transfer of knowledge between both departments and allowing IT to do their own risk analysis.”Quote from a risk manager during

97、 workshopRegular,close collaboration based on a clear mandate Occasional collaborationUnder the risk managers responsibility(now or for an extended period of time)No relationship/involvement49%52%37%32%7%8%6%8%FERMA European Risk Manager Survey Report-2022|41 40|FERMA European Risk Manager Survey Re

98、port-2022|Access to aggregated and anonymised historical claims and loss data on large risks improves risk management practices 12%of the respondents agree fully with the statement above,32%consider it would improve practices to a large extent,and 36%to some extent.Only 15%think the improvement woul

99、d be small and 5%saw no improvement with such data access.Benefit from more access to data on historical claims and losses for risk management practicesMore accurate risk assessmentBetter dialogue with insurersBetter dialogue with brokersOther81%46%29%6%“When you have access to open data,you can com

100、pare your company with the market.Compliance and data protection can be part of the explanation for the reluctance of risk managers to provide their data to others.”Quote from a risk manager from the webinarPart.IV 42|FERMA European Risk Manager Survey Report-2022Insurance market conditions drive al

101、ternative solutions for risk managementInsurance market conditions evolved in the last 2 years even if the market was already hardening before the pandemic,and now the Ukrainian war has added even more pressure.Identifying the most suitable strategies to cover risks is a priority.Insurance managers

102、must understand the trends of the market and provide appropriate analysis to decision makers,to continue adapting strategies to cover risks the most efficiently.These trends had different intensities of impact.The insurance managers identified increase in premium as the one with the heaviest impact,

103、far behind the second trend of reduction in capacity(32%)and the third with limitations and exclusions of specific risks(20%).In 2020,risk managers with an IM profile regarded limits and exclusions of emerging/specific risks in insurance contracts and change in market conditions as their main concer

104、ns about the insurance market.|Tougher insurance market conditions are still the risk managers top concernInsurance market trends and impacts in the past 12 months20%2%5%23%9%27%16%20%33%55%20%38%53%43%36%43%15%39%26%24%27%42%20%7%32%10%7%10%Minor impact No impactHeavy impactMajor impactConcentratio

105、n of insurance companiesIncrease in premiumLimitations and exclusions on speficic risksNew regulationsReduction in capacityWithdrawal from coverageWording changesInsurers can work with customers to better adapt to climate change by investing in more resilient infrastructure and supply chains and pro

106、viding advice to help clients address the physical and transition risks.However,meaningful change will require collective action across sectors of the industry,including publicprivate partnerships in which insurers can collaborate with business insurance customers,regulators,local governments and po

107、licymakers to mitigate climate risk.This sort of collaborative effort can take the form of developing holistic catastrophe risk models,investing in data collection and climate adaptation research,and fostering coherent and consistent climate policies and regulatory frameworks,among other initiatives

108、.PwC Study,Insurance 2025 and Beyond:Insurance reimagined:spotlight on trust,convergence,and transformation.*https:/ 44|FERMA European Risk Manager Survey Report-2022Risk managers continued to adapt to the hard insurance market.Insurance strategies were reassessed in the past 12 monthsChanges to the

109、 insurance strategy over the past 12 monthsChanges in coverageDo you think some business activities or locations could be uninsurable in the future?Changes to the insurance buying pattern(review needs,the limits,and sub-limits)Acceleration of claims settlement processStrengthen loss prevention activ

110、itySelection of more financially robust insurersNegociate long-term agreements or roll-oversOtherImplementation or further use of captive facilitiesPurchase of credit insuranceNo change66%15%40%11%31%6%28%3%24%Changes to the insurance buying pattern(66%):highest increase in terms of insurance strate

111、gy (50%in 2020).Strengthen loss prevention activity(40%in 2022 and 60%in 2020).Negotiate long-term agreement(31%in 2022 and 53%in 2020).These changes were mainly decided because the market was hardening(for 81%of the respondents).For 43%of the organisations,there was a decision to self-insure and/or

112、 retain more risks,and for 41%the risk profile of the company evolved and needed adaptative measures.Other reasons for a few respondents were the economic climate and the competitive prices observed with another provider.41%of the respondents considered that some locations and business activities ma

113、y become uninsurable in the future.When asked about the activities,cyber risk and environment related activities are predominating.Small reductionReductionIncreaseNo changeLarge reductionNo coverage9%17%12%13%20%16%17%18%17%6%10%12%12%18%11%1%9%7%2%4%3%13%45%69%57%56%62%48%33%12%1%6%4%2%5%14%8%4%6%6

114、%4%9%Cyber risk coverageDirectors&Officers liabilityEnvironmental impairment liabilityErrors&omissions/Professional liabilitiesNatural catastrophe coverageProduct liabilityPublic liabilityYesNo59%41%Cyber insurance shows the greatest change in coverage with 50%reporting a reduction,33%large.D&O has

115、also seen a contraction in coverage.|Captives are confirmed as an attractive strategyFERMA European Risk Manager Survey Report-2022|47 46|FERMA European Risk Manager Survey Report-202235%of the respondents expect to use an existing captive in the next two years(27%in 2020),while 12%decided to create

116、 one(16%in 2020).Indeed,the risks confronting European companies and the hardening insurance market highlight the growing concerns of risk managers regarding emerging risks and their need for viable solutions.Risk retention remains the main method for financing risks dealing with the insurance marke

117、t evolution(73%in 2022 versus 76%in 2020).The use of alternative risk transfer vehicles decreased(29%in 2022 versus 46%in 2020).The use of captives increased over the years:in 2022,38%of respondents are using captives,either their own or a one shared with other organisations.This demonstrates the co

118、ntinuing attractiveness of captives when risks are still and more difficult or expensive to place on the insurance market.Traditional lines of cover:e.g.employee benefits,general/third party liability,employers liability/workers compensation,property,terrorism,automotive liability,professional liabi

119、lity Non-traditional lines of cover:e.g.medical stop-loss,crime,political risk,trade credit,surety,intellectual property,supply chain risks,cyber risks,climate changeRisk managers confirm captives are a valuable tool to manage traditional and non-traditional lines of cover.The respondents expect the

120、ir captives activities to cover more lines of business over the next 2 years.Risk financing strategies over the next 2 years:evidence of the importance of captivesEstimation of captive involvement in the next 2 yearsOver the next 2 years,what will be your strategy in regards to the financing of your

121、 risks?Involvement of captives in lines of business within the next 2 yearsOwnership of captivesRisk retentionUse alternative risk transfer vehiclesUse an existing captiveCreate a captive insurance/re-insurance companyOther73%29%35%12%12%Use of captive for non-traditional lines of coverUse of captiv

122、e for traditional lines of coverFinancial servicesIndustryPublic sectorServices21%42%50%11%7%3%2%72%57%50%86%Yes,a captive dedicated to the companyYes,a captive shared with other organisationsDo not use a captiveIdenticalLess important More importantNot covered 48|FERMA European Risk Manager Survey Report-2022Contact us for further informationin partnership withenquiriesferma.euwww.ferma.euCopyright 2022 FERMA,in partnership with PwC