The results of the 2022 European Risk Manager Survey conducted by Federation of European Risk Management Association (FERMA) have been released.
The biennial survey conducted in partnership with PwC France received 500 responses from 27 countries. The survey is conducted since 2001-02 and this is the first one to be completed since the pandemic.
Exceptional? circumstances have happened since the last survey released in 2020. The survey found that the biggest threats for businesses in 2022 are linked or amplified by the global pandemic and Ukrainian crisis: Cyber threats, supply chain and disruption failure, geopolitical uncertainties, and uncertain economic growth notably with the increase in the cost of raw material and energy, and the issue of their availability as well as the inflation.
Cyber attacks continue to be at the top of mind in the short (12 months) and medium-term (three years), while risks related to sustainability are two of the top three risks in the long term (10 years) with climate change the number one risk and natural disasters at number three.
Results show the triple crunch in buying insurance protection that risk managers face:
78% are heavily impacted or face a major impact in terms of increase in premium
71% in terms of reduction in capacity
63% in terms of limitations and exclusions on specific risks
As a consequence, risk managers are adapting their insurance strategy over the next two years focusing on risk retention (73%), using a captive (35%), creating a captive (12%), and using alternative risk transfer vehicles (29%). The interest in captives has gone up significantly over the past five years from 15% in 2018 to 47% today.
In addition, 41% of the respondents believe that some of their company’s activities or locations will become uninsurable in the future illustrating the growing difficulty to insure risks that are seen as systemic (cyber, climate change and more).
Most of the risk managers (91%) are involved in corporate strategy either fully, mostly, or partially. A growing number of risk managers is playing or planning to play a specific role regarding ESG-related risks in their organizations (56% against 40% in 2020) and 82% collaborate with the CSR/sustainability department with 32% having a close interaction against 20% in 2020.
More than half the risk managers work closely with IT and information security on cyber risks or have it within their team. More than one-third of risk managers are directly involved in the management of risks related to the adoption of new technologies by their organization.