Three Key Risks Communications, Media, and Technology Companies Must Manage in 2015
The generally favorable insurance market conditions that communications, media, and technology (CMT) companies saw in 2014 are likely to continue in 2015, according to Marsh’s recently released "US Insurance Market Report 2015."
At the same time, CMT companies face a number of emerging risks in 2015, including:
- Global risks: Because their global operations often depend on networks of international systems and supply chains, CMT companies are especially vulnerable to unpredictable and potentially devastating risks, some of which may not be insurable.
- New business models: The convergence throughout all CMT sectors and continued merger-and-acquisition (M&A) activity challenge insureds and underwriters to agree upon the scope of covered risks.
- Communications and technology infrastructure: The risk of technology failure is compounded for CMT companies as both they and their clients may depend on the infrastructure and technology solutions they provide. A failure or breach can have far-reaching consequences on a CMT company’s brand, reputation, and bottom line.
Managing CMT Risks
CMT companies need to be prepared for global risks such as network breakdowns and supply chain breakdowns that may stem from natural catastrophes, civil unrest, or political risk, and for growing data security and privacy risks. They should implement enterprise risk management frameworks and governance structures and take steps to fully understand and quantify their exposures.
For more information on insurance market conditions and risk trends for communications, media, and technology companies, read our US Insurance Market Report 2015.
About the Insurance Market Report
The "US Insurance Market Report" is one of six regional reports that analyze insurance market conditions and risk trends in 62 countries worldwide. All of the reports can be accessed at US Insurance Market Report 2015.