June 14, 2019 13:30
The digital transformation of the natural disasters are some of the main issues raised by thefinancial markets Authority in its annual Report on the financial institutions to 2018, published yesterday, faced by financial institutions.
“These issues can be a source of challenges and risks, but can also bring them a lot of opportunities,” says the regulator.
Most of cyber risks
The Authority notes that the advent of technology and behavioural changes of consumers brings “new risks at the operational, strategic, ethical, and financial” for financial institutions. These are found to be at greater risk for cyber criminals, who take advantage of a greater attack surface and exploitable vulnerabilities.
“The risks associated with information technology and communications are at the heart of the concerns of the Authority. The findings derived from the work of monitoring allow to put in place an appropriate framework promoting the orderly development of the industry and protection of consumers “, says the regulatory body.
Also, natural disasters remain one of the concerns of the Authority, which had also cited the last year. It is that 2018 was the fourth year the most expensive in this area, with more than two billion dollars in damage.
“According to the trend observed in recent years, insurers will face an increase is even more pronounced for this type of disaster,” says the Authority.
The regulator cites the abundant rainfall received in the winter to illustrate his point.
Household debt a concern
The Authority has also reported that although the average debt ratio for Quebec is lower than in other provinces, this remains a concern for the regulator. The low interest rates and the increase in the value of properties “facilitated the debt for canadian households in recent years,” she explains.
“The increases in the rate occurred in the course of the year 2018 have had impacts on many consumers in québec,” added the Authority.