Argo broker survey identifies most pressing re/insurance shortfalls

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A survey of brokers and the small and medium-sized businesses (SMEs) they serve, conducted by global specialty re/insurer Argo Group International Holdings, Ltd., has identified cybercrime, climate change, and talent retention as among the areas where re/insurance is most likely to fall behind.

For example, Argo found that 71% of brokers claim to be familiar with cyber risks, while 84% of SMEs considered cyber threats to be a priority issue, yet only 40% of SMEs carry any cyber coverage.

Argo noted that cyber pricing is particularly difficult given the re/insurance industry’s limited experience in assessing the impact of emerging cyber risks, and said that it expects to see a further disconnect between reductions in the cost of cyber coverage and the increasing scope of risk.

Similarly, climate change may entail a host of emerging risks, such as heightened flood exposure due to rising sea levels, and stronger, less predictable hurricanes