Emerging Risk InitiativeThe CRO Forum Emerging Risks Initiative (ERI) was launched in 2005 to raise awareness of major emerging risks relevant to society and the (re)insurance industry. The Emerging Risks Initiative consists of ten members representing Allianz, AXA, Hannover Re, Lloyd's, Munich Re, RSA, Prudential, SCOR, Swiss Re and Zurich Insurance Group.
Water risks are often underestimated, disregarded or simply ignored. They represent major emerging risks for the re/insurance industry and for global society in terms of scarcity, pollution, health, treatment, conflicts, regulatory and reputational risks. Water risks are complex to assess. Such difficulty stems from the paradoxical nature of water: it is plentiful to many yet […]
The world is about to embark on a fourth industrial revolution, propelled by innovative technologies termed as the “Smart Factory.” The real world will be turned into a huge information system bringing about a new paradigm in industrial business models affecting supply chains, transportation systems, and labour skills. With the Smart Factory still in its […]
Pushing the limits – Managing risk in a faster taller, bigger world Our world is moving into unprecedented technological dimensions, with new records being set almost every day. High-speed trains are getting ever faster, buildings ever taller and bridges ever longer. Complexity and interconnectivity are increasingly becoming part of our day-to-day lives. This publication spotlights […]
This fifth paper in our series on managing environmental, social and governance (ESG) challenges in business transactions is dedicated to the topic of human rights. It focuses on the core functions of the insurance industry – risk transfer and the investment of insurance premiums. Human rights is a broad and complex topic. This discussion paper […]
Risk appetite has been at the forefront of risk management discussion, especially since the global financial crisis. We are therefore pleased to introduce our latest publication “Establishing and Embedding Risk Appetite: Practitioners’ view” which is the first paper jointly authored by the CRO Council and CRO Forum.
Food risk, whether food insecurity or unsafe food, has wide ramifications for society and businesses, exposing risk managers and insurers both directly and indirectly to a large number of risks. Different areas of business and different types of insurance cover can feel the impact of food insecurity and unsafe food ranging from crop insurance through […]
Diversification is at the heart of insurance business and risk management. The CRO Forum continues to believe that recognising diversification benefits provides a key tool in meeting policyholder protection and financial stability objectives. This paper builds on the 2005 publication from the Forum on this topic and provides a basis for companies to evaluate and […]
This paper is the fourth blueprint in our series on managing environmental, social and governance (ESG) challenges in business transactions, focusing on the core functions of the insurance industry – risk transfer and investments. Environmental, socio-economic and geopolitical developments shaping country risk profiles have become a focal point for the insurance industry in the past […]
Human and animal life is widely exposed to many artificial substances that interfere with the sensitively constructed hormonal system. Substances that interfere with hormones are called Endocrine Disrupting compounds/chemicals (EDC). EDCs are a truly emerging risk. There is strong evidence for negative effects on animal organisms and mounting evidence for effects on human health. Evidence […]
A study by the Chief Risk Officer’s (CRO) Forum has found that the risk of large scale power disruptions is set to increase due to the growing interconnectedness of electricity grids, changing mix of power sources and aging infrastructure
This presents the insurance industry with significant challenges and opportunities. The paper recommends that assessing risk over the life cycle of these nanomaterials should be standard practice for the nanotechnology industry, as well as for their insurers and reinsurers.
The longevity paper finds that increased life expectancy will challenge society to provide adequate income to all individuals through old age. Consequently, demand for longevity risk mitigation solutions is growing, and life insurers should play an important role. However, their current capacity to take longevity risk onto their balance sheets is small relative to global longevity risk exposure.
The Emerging Risks Initiative releases today three papers on risks emerging in the insurance industry, namely: Environmental liabilities & biodiversity losses; Carbon nano tubes (CNT); and Workplace related stress. The papers identify elements of the changing risk landscape that may create new challenges for stakeholders such as public authorities as well as financial institutions like insurance providers.
but their views vary widely regarding how it will unfold and what excess mortality fi gures will result. Although analyses of past pandemics provide an insight into possible future scenarios, a simple extrapolation of statistics can be highly misleading. However, the 1918 Spanish fl u is often used as a basis for projecting the possible impact of a severe pandemic.
As recent terrorist activities in major cities – notably, the 11 September 2001 attacks in the United States – have made strikingly clear, terrorism has developed into a threat that affects every aspect of society and knows no national boundaries. Although there is no internationally binding defi nition of terrorism, some aspects can be agreed on: it seeks to cause human suffering, to instil widespread fear, and to disrupt life and business. The insurance industry has responded to this evolving hazard, and is doing all in its power to manage the terrorism risk.
The Chief Risk Officer (CRO) Forum’s Emerging Risk Initiative is committed to continuously improving risk management. This paper advocates as best practice a process whereby insurers and reinsurers re-examine their assumptions about frequency, severity, loss trends and how the risks in their portfolios are interconnected and generally stress test their internal processes for hitherto “unthinkable” dimensions of risks. The paper seeks to address rating agencies, analysts, governments, regulators, intermediaries and risk modelling firms alike. This study is non-binding and for reference purposes only.