Context
The IUA recently hosted a joint webinar with the Singapore College of Insurance to examine emerging global risks, where it presented its observations and conclusions which are now published in its white paper, titled ‘Insuring the Intangible: How the London Market is Navigating Emerging Global Risks’. The event showed how such challenges are no longer creeping in from the edges, but arriving in waves of geopolitical unrest, climate extremes, artificial intelligence-driven disruption and litigation trends that outpace regulation.
Key points to note and next actions
The white paper poses the question: ’Are we prepared to underwrite risks that we have not yet defined?’ and considers how emerging risks are impacting insurers, how the London company market is responding and how the sector can work collaboratively to meet future challenges.
Tom Hughes, Director of Underwriting, said: “Insurers are facing emerging risks at an unprecedented level. There is a continuous need to monitor and adapt to threats arising from geopolitical unrest, climate extremes, rapid advances in artificial intelligence, malicious cyber attacks and litigation trends that outpace regulation.”
The white paper considers emerging risks, divided into three categories:
- Risks with uncertain impact, such as Per- and polyfluoroalkyl substances (PFAS), man-made chemicals that do not easily break down in the environment or the human body.
- Artificial intelligence and risks in complex, interconnected systems.
- Risks resulting from changes in context caused, for example, by geopolitical developments or climate change.
Hughes added: “In an increasingly interconnected world, the challenges we face transcend borders, industries and sectors. Tackling these issues calls for a commitment to open communication and collaboration with the aim of growing our collective understanding.