A shortage of skills in emerging technologies is stopping insurers and other financial services providers from effectively managing risk, according to Accenture. 

The consultant’s Global Risk Management study questioned 475 senior risk management executives in banking, insurance and capital worldwide.

Despite progress applying smart technologies such as cloud storage, biometrics and Big Data analytics, 66% of respondents feel skills deficiencies impede effective risk management. In Australia the figure is 70%.

While 91% of insurers use cloud technology, only 26% are highly proficient, 36% do not use its full potential and 29% are only just introducing it.

Accenture says without the cloud’s “capacity and firepower, digital simply does not happen”.

Only 13% of Australian respondents believe they will have the internal resources in two years to carry out required functions, compared with 25% globally.

In Australia only 3% have risk teams with the internal resources to carry out required functions (10% globally), and 70% say an increase in the “velocity, variety and volume” of data is a barrier to effective risk management (73% globally).

The results echo a recent LinkedIn article by AIG CEO Brian Duperreault who says insurers need to attract people who grew up with technology in response to a predicted 400,000 jobs shortfall.