Technology innovation will provide the biggest growth opportunities for insurers and reinsurers next year, according to a Guy Carpenter survey of industry executives.

“One of the most important findings we can take away from this year’s survey is the significant growth opportunity that technology innovation continues to bring,” US Operations CEO Tim Gardner said.

“The industry must be prepared to not only understand and manage the risks associated with these rapid advancements, but to also utilise these innovations to create actionable business intelligence and realise profitable growth opportunities.”

Technology innovation was cited by 42% of respondents, while 25% nominated new products and 13% new geographic markets. Talent acquisition followed on 12%, with mergers and acquisitions on 8%.

Financial recession was flagged by 36% of executives as the biggest emerging threat to growth, while one in three ranked cyber risk as a major threat, ranking above other technology risks, climate change and terrorism.

Regulatory and ratings changes were the biggest threat to profitable growth next year for 21% of respondents, while 17% cited global economic and political uncertainty and 16% nominated operational inefficiencies.

“Insurers are facing an increasingly complex market that will require them to be nimble and innovate to remain competitive,” Mr Gardner said.

The rise of Big Data was the most disruptive market force over the next five years, according to 38% of respondents. The speed of technological innovation, the ageing population, millennials and expanding urbanisation were also seen as key forces.

The reinsurance broker surveyed 107 insurance and reinsurance professions at the Property Casualty Insurers Association of America annual meeting in Dallas, Texas, last month.