The insurance industry should look to share more knowledge and experiences on emerging risks to help both the industry and clients better prepare for the future, an expert has said.
Following the release of Swiss Re
’s latest SONAR report, which grouped together the biggest emerging risks facing the insurance industry, Nick Sordon, senior casualty treaty underwriter, Swiss Re
, said sharing knowledge on the evolving risk landscape will be vital.
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“Being able to share this knowledge and these experiences we are able to prepare for these risks of tomorrow and even though not all of these will materialise, the earlier we adapt the better prepared we are to face these in the future,” Sordon told Insurance Business
. “The reality is, no-one is going to be right; what you are trying to do is become less wrong and be prepared for the future as best you can. Be aware of all the different facets to these emerging risks and be across them as much as you can.”
The SONAR report found a diverse range of emerging risks that could impact the industry and wider society in the near and distant future. While high-profile emerging risks, such as driverless cars, artificial intelligence and the Internet of Things are all discussed in the research, SONAR sheds light on other concerns, including the rising risks of e-sports, carcinogens in artificial turf and advances in precision medicine.
Sordon said that by sharing knowledge and experiences, the industry can become smarter, as a reliance on data, which is often the backbone of the industry, is less effective when it comes to rapidly emerging risks and trends.
“We believe firms are smarter together,” Sordon continued. “If we use the knowledge of each other, you do a knowledge risk transfer with each other and you gain a whole range of different perspectives.”
An understanding of risks that could impact businesses further down the line is important for the industry as it battles outside disruption.
For brokers and the rest of the industry, Sordon said that while emerging risks could be hazardous they also present opportunities for new products and new ways of working with clients.
“Not only is it being aware of the risk but being prepared for the opportunity,” Sordon said.
“Insurers, reinsurers and brokers are in a really good positon to advise their clients on best practices around emerging risks and it is important that you maintain that common understanding of developments in these areas.”
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