New Research Highlights Third Party Risks For Insurance Brands

This latest research is a bit of a warning for insurers and brokers, because when it comes to third party suppliers and partners, a lot of virtual open doors are available online via portals, platforms and emails. Here’s the word;

A new report from Dun & Bradstreet reveals that almost nine in 10 (85%) UK insurers and brokers have experienced negative impacts from third party-related risks, including security breaches, financial loss, supply chain disruptions, and reputational damage. 

As external pressures mount, confidence in internal data remains low. Nearly 70% say they cannot effectively forecast future trends, over 80% are unable to assess non-financial risks, and just 29% feel equipped to make informed business decisions. These limitations are compounded by persistent data challenges:

• 71% report duplicate data

• 63% distrust their data sets

• 57% say they have siloed data

“Insurers are rightly increasing their investment in risk management; many are still trying to tackle tomorrow’s threats with yesterday’s tools,” says Zulf Raja, Head of Insurance at Dun & Bradstreet. “Reliance on poor-quality data and manual processes not only leaves firms exposed but actively undermines the value of their investments. Prioritising strong data foundations and processes is essential to support smarter decision-making and help insurers keep pace with the complexity of today’s risk landscape.”

The research also highlights a disconnect between investment and preparedness. Most firms have increased their budgets in the last 18 months across key areas:

• 71% have boosted spending on ESG

• 74% on cybersecurity

• 73% on legal and compliance

• 64% on fraud.

Yet many respondents still feel underprepared to manage these same challenges:

• 34% for ESG

• 28% for cybersecurity

• 25% for legal and compliance

• 22% for fraud

This disconnect between investment and readiness suggests that firms are struggling to translate budget into effective risk mitigation. One of the top barriers cited is the difficulty measuring or quantifying the risk (32%). Strengthening data quality and modernising their risk processes is now critical for insurers.

To safeguard their operations, reputation, and long-term resilience, insurers must act decisively to address the growing complexity of third-party threats.

View the full report here to explore the findings.