Most insurance companies face big problems from outside partners. A new Dun & Bradstreet report shows this clearly. 85% of insurers say third-party risks hurt their business. This is a fresh global survey result.
These risks are causing real trouble right now. Insurers depend on many outside companies. Think about data processing or claims handling. When these partners fail, insurers suffer.
Insurers Grapple with Outside Dangers
Outside dangers come in many forms. They include issues in the supply chain. Data breaches from a partner are another big risk. Also, partners might not follow rules. These are all third-party risks.
These problems cause major harm. Insurers lose money. Their good name can suffer. Business operations might stop. They can even face big fines.
The Dun & Bradstreet study found more bad news. 61% of insurers had a third-party problem last year. This is higher than for other types of businesses. It shows how much insurers rely on outside help.
Do you know who your business partners truly are? Knowing this helps you understand your risks. You can learn more about managing these outside risks here.
Why These Risks Are So Hard to Handle
Managing these risks is tough. Insurers see several big challenges. First, they lack clear views into partner operations. 40% of insurers reported this problem. They just cannot see what their partners are doing.
Second, rules are complex. 36% of insurers struggle with many different laws. It is hard to make sure all partners follow them. This makes compliance a headache.
Third, insurers often lack enough tools. They do not have enough people. These resources are needed to check partners properly. 34% of insurers feel this shortage.
More companies use outside help today. Digital ways of working increase this need. Outsourcing also adds more partners to the mix. This makes checking them even more important.
The report suggests solutions. Insurers must watch their partners better. They need strong plans to fix problems. Using smart data tools can help a lot. Investing in new technology is key.
Dun & Bradstreet offers advice. They say insurers should put all data in one place. Using AI can give them better insights. Automating risk checks also saves time. This helps find problems faster.
This new report sends a clear message. Insurers must act now. They need to improve how they handle outside risks. Ignoring these dangers could be very costly. You can find more details about Dun & Bradstreet on their website.
Staying safe means staying alert. It means knowing your partners well. This is crucial for all insurance businesses today.
