Products required for ‘prolific’ emerging risks

Products required for ‘prolific’ emerging risks | Insurance Business

Products required for ‘prolific’ emerging risks

An award winning broker has said insurance products must be developed with greater care and consideration moving forward, as new risks emerge faster and more frequently than ever before.

“Emerging risks are prolific and are surfacing more regularly with the acceleration of technology,” says Marcus Pallotta, a senior consultant at Marsh.

“A plethora of our clients are exploring investment in this area, with an intention to automate some processes involved in the supply chain,” he continues.

According to Pallotta – who was recently recognised by NIBA as West Australia’s Young Professional Broker of the Year – it’s critical that, as these initiatives progress, relevant and reliable solutions are made available so businesses can adequately insure the risks.

“With technology moving at an exponential pace, the products developed by insurers must correctly reflect the risk,” he tells Insurance Business.

“Cyber is an example of a product where coverage has traditionally lagged behind the actual risks that businesses are facing,” he continues. “We must ensure that products being developed for formative risks are fit for purpose from the off.”