Image
Icon

Directory

IconActuaries
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconFAIS
IconHuman Resources
IconInformation Technology and Software Partners
IconLegal
IconLife Insurance Companies
IconLife Insurance Products
IconOmbud
IconOutbound Sales
IconPolicy Administration
IconPolicy Trading
IconPublications
IconRe-insurance Companies
IconRegulatory Authorities
IconSales and Sales Management
IconSocial Grants (Government)
IconSurveys and Research
IconTraining Courses & Workshops
IconWellness Programs
Image
  Subscribe To »

Swiss Re's 2017 SONAR report examines top emerging risks the re/insurance industry and society are facing

Published

2017

Wed

14

Jun

  • Swiss Re's latest SONAR report features 20 new emerging risk themes and six emerging trend spotlights the re/insurance industry should have on its radar
  • Reduced market access, regulatory fragmentation, the return of inflation, and cloud risk accumulation pose the largest challenges with the highest downside risk potential in the short term
  • Other risks further out on the time scale are in the health and environmental area, such as the potency of underestimated infectious diseases and growing water stress
  • The yearly SONAR report aims to spark an informed dialogue about what future risk landscape might lie ahead

Reduced market access, regulatory fragmentation, the return of inflation, cloud risk accumulation, but also emerging liability legislation for artificial intelligence, are some of the key risks identified in this year's SONAR report. The publication is based on the SONAR process, a crowdsourcing tool drawing on Swiss Re's unique internal risk management expertise to pick up early signals of what lies beyond the horizon.

The report offers insights into emerging risks and highlights a number of emerging trend spotlights. Emerging risks are newly developing or evolving risks that are difficult to quantify and sometimes not fully understood, but potentially have an impact on the industry and society. Emerging trend spotlights examine early development, which may offer both opportunities and risks for the insurance industry in the future. The report is widely distributed among clients and the wider stakeholder community in order to inform the debate about emerging risks and facilitate the finding of solutions.

"Ignoring emerging risks is not an option, neither for political decision-makers, the insurance industry, nor society as a whole. The earlier we adapt to these changes, the better prepared we will be", says Patrick Raaflaub, Swiss Re's Group Chief Risk Officer. "Sharing knowledge through a proactive risk dialogue across stakeholders can help the insurance industry create a pro-active and pre-emptive risk management culture that enables disciplined risk-taking. That is an important step to help society as a whole to become more resilient", Raaflaub adds.

The identified risks are relevant to life and non-life insurance areas as well as asset management. They are presented with the goal of helping industry players prepare for new scenarios by adapting their behaviour, market conduct and product portfolios.

Table: Overview of the 20 new emerging risks and their potential impact over time

The six top risks with the highest potential impact:

Reduced market access – protecting your own backyard: The use of regulation to control capital flows and encourage protectionism could eventually undermine the business models of international corporations.

Island solutions – regulatory fragmentation: Increased fragmentation in regulation could undermine re/insurers' ability to support economic activity and act as stabilizers in the financial markets. In a fragmented regulatory world there is also much less opportunity to efficiently pool risks.

The return of inflation – the effect on insurance business: After years of low inflation and even fears of deflation, we see signs of headline price increases here and there. Inflation can affect insurers' profitability, in particular on long-term liabilities (life, casualty). It can also have an adverse impact on asset management.

The perfect storm – cloud risk accumulation: Cloud services have become widespread, for business and households alike. But as the cloud accumulates data-sets and services on an ever-increasing scale, it also generates a variety of risks that may accumulate to a "perfect storm", e.g. by a cyber-attack or a power blackout.

The big drying – growing water stress: While the U.S. Southwest is in an on-going water crisis, similar situations can be found today and in the future around the world – from Southern Europe and the Mediterranean to Africa, parts of Asia and Latin America. The risks range from wildfires, competition for water among the energy and agricultural sectors to mass migration and wider conflict potentials.

Bugs on the march – underestimated infectious diseases: The question is not whether deadly infectious diseases will appear, but when and how society is prepared to cope with them. In an extreme scenario, each epidemic or pandemic has high relevance for life and health insurance and the financial markets.

 
Source: Swiss Re
 
« Back to previous page Print this page » |
 

Breaking News »

Big Tech, Not Fintech, Causing Greatest Disruption to Banking and Insurance Markets

Fintech start-ups have fallen short of their ambitions to upend the competitive landscape in finance, driving innovation but failing to capture large market share, a new World Economic Forum report finds The ...
Read More »

  

POPI Awareness Training

Moonstone Business School of Excellence (MBSE), in collaboration with Compliance Online, now offer a nine-module online training course for businesses that will be required to comply with the requirements of the ...
Read More »

  

Can The Appeal Board overrule FSB decision?

The recent Willbrink Outsources CC decision by the FSB Appeal Board assessed a rather novel approach to overturn a FSB decision. The appeal was in respect of the Registrar’s decision to withdraw the appellant’s ...
Read More »

  

POPI challenges for the financial services industry

By Elizabeth de Stadler, Compliance Online The Protection of Personal Information Act (POPI) applies to all industries, but some industries will be more affected than others, with financial services being one ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Agency System:

A system of obtaining business through a network of agents. Such agents have a contract to represent the company.
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2017.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds