Consequences for the insurance industry and society
Duration: 60 minutes
Emerging risks often go unrecognised until they materialise in unexpected large-scale, high-impact risk events, or in sudden trends. What they all have in common is that their occurrence probability, loss amount, and potential impact are exceedingly difficult to quantify, not least because they still occur very rarely. But when emerging risks do materialise, they tend to come with devastating consequences – for people and property.
Emerging risks can have substantial consequences for underwriting, industry and society. Most often, they materialise as long-tail risks with the losses settled over a medium- to long-term period. Conventional risk management is ineffective without a clear understanding of risk factors. Growing global interconnectedness, increasing complexity and geopolitical risks make identifying them even more complicated in a rapidly changing risk landscape.
Origin and nature of emerging risks
Identifying emerging risks
Trends and an examination of selected emerging risks