Economy Overview

Globalisation and the increasing use of information and communication technology are producing ever more complex dependencies. These also include topics like demographic trends, climate change, new technologies and IT risks. This increasingly dynamic nature of business is posing greater challenges for directors and officers. Economic losses and liability issues are becoming as globalised as business itself.

Assessing these risks requires comprehensive expertise and a deep understanding of the changing risk landscape. Dealing with such risks has become part of daily business in every sector: claims for damages can be filed both by staff, shareholders and customers as well as by competitors and supervisory authorities. Especially given the extensive media coverage of corporate governance issues, and today’s globally networked stakeholders, corresponding insurance solutions constitute an essential element of a company’s risk management strategy. In addition, large companies need insurance solutions for the financial and liability risks associated with stock-market and other corporate transactions, for example IPOs or M&As. For primary insurers, this represents a significant business opportunity with good growth potential.

Technological progress – i.e. the continuous introduction of innovations that boost productivity – is a major prerequisite for long-term economic growth. Digitalisation, i.e. the networking and computerising of production processes – otherwise known as Industry 4.0. – is fostering great expectations. 
 
As production processes become increasingly automated, production costs will to a large extent be decoupled from labour costs. Employees’ wages and salaries will account for an ever smaller part of the production costs. The digitalisation of economies is unlocking further important potential for innovation – not only on the product side, but also in dealing with our clients.

The uncertainties affecting the insurance industry have been increasing over the last few years. The rising number of domestic and international conflicts, the ongoing grave risks from terrorism, the continuing pace of climate change, and a cooling of growth in China – to name but a few of the risks from a very long list of uncertainties. Many of these risks are also interlinked, which makes it even more difficult to find a solution to individual crises.