The CRO Forum’s Emerging Risk Initiative continually scans the horizon to identify and communicate emerging risks facing the insurance industry.
The Emerging Risk Initiative identified the current major trends and emerging risk which are expected to have a significant impact on insurance claims within 1 to 10 years. These trends and risks are described in the 2019 update of the Emerging Risk Radar.
Compared to the Emerging Risk Radar 2018, the following changes were applied in the 2019 edition:
- Two new risks were included: “Passive Investment” and “Medical Advances”. For the latter a dedicated paper is planned to be published by the Emerging Risk Initiative end of this year;
- The risks: “Longevity” and “Permafrost Thawing” were merged into “Medical Advances” and “Climate Tipping Points” respectively;
- For two risks the horizon of realisation was shortened: “Critical Infrastructure Blackouts” (the risk name in 2018 was “Critical Infrastructure & Power Blackouts”) and “Predictive Genetic“ (in 2018 risk was called “Genetic Testing”);
- For two risks either the horizon of realisation was extended, or the impact was lowered: “Endocrine Disruptors” and “Sharing Economy”;
- “Food Risk” and “Water Risk” were merged into one common risk “Food and Water Supply”;
- The sub-trends were incorporated in the detailed descriptions of the major trends;
- For two risks their detailed descriptions were extended: “Growth of Leverage” (the risk name in 2018 was “Debt Burst”) and “Monetary Policies”;
- Slight wording modifications in descriptions were applied also to the following risks: “Artificial Intelligence”, “Critical Infrastructure & Power Blackouts”, “Digital Currencies”, “Environmental Pollution”, “Legal & Regulatory Uncertainty”.
We hope this Emerging Risk Radar will be as useful and insightful for readers when considering and framing their emerging risks as it has been for us.