The global risk services consulting market grew by 7.7% to £52.9bn in 2018, buoyed by rising demand across the spectrum of risks -- particularly cyber security, which now accounts for a quarter of the market. So says a report from Source Global Research, which suggests cyber security risk services are effectively "cannibalising" the more traditional areas of risk service provision. Other fast-growing areas include the much smaller risk transformation service line and third-party assurance services.
The Risk Services Market 2019 report also emphasises the growing relevance of sustainability and environmental issues -- due in part to increased legislation as well as the fear of reputational damage resulting from a failure to adopt an environmentally aware approach.
It said the impact of climate change is also leading to the development of "new areas of risk management" as clients seek support to develop strategies in the face of increased risks such as fire, flood, and drought. It did not specify what these were, but certainly tools including parametrics and drone tech are gaining traction for insurers.
The more heavily regulated sectors are those seeing the biggest uptick in risk services demand. Financial services generate over a third of all risk service revenues.
In terms of the fastest growing markets, the US performed well, with an 8.3% uptick in work, while China saw a rise of 9.6%.
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