In this issue….
Our world is changing fast. Digitalization is transforming business globally. Customers want services in near-real-time. Change is routine and service is expected to be delivered faster and with better value than yesterday. Can the commercial insurance industry keep pace? In future, insurers will need to be fast, lean and smart, but they are not there yet. There is a realization in the industry that innovative tools and solutions (some of them transformative – but costly) will have to be made in order to stay relevant and offer value to customers. New tools will be needed for growing perils like cyber and long-tailed liability risks – “the next asbestos”. A changing climate threatens to upend historic catastrophe models, sparking innovative weather risk solutions. Start-up digital solution providers threaten to disrupt the commercial insurance space. Ways of going to market are changing with the advent of “distributed ledger technologies” like blockchain. Even the role of the underwriter is in question, as automation grows. Tomorrow’s underwriting function will likely be much different than it is today and new skillsets will be required.
Innovation in insurance is the main topic of this issue of Global Risk Dialogue, as it examines some of the ways in which the impact of customer expectations and changing business models will transform the risk business. It also looks at the latest innovations in a number of other industries as well, including the energy, automotive and marine sectors.
Check out the featured articles below:
A new Siemens designed combined cycle gas turbine (CCGT) power plant, nicknamed “Fortuna” and located in Düsseldorf, Germany, that has become a symbol for future-oriented and more environmentally friendly electricity and heat generation. AGCS was the lead insurer on this record setting project.
Driverless automobiles are already here, but the infrastructure to support them is many years away. Nevertheless, the insurance industry is grappling with future implications of ethics on the road, as liability exposures shift from “human error” to “product error”.
The 14 costliest natural disasters since 1992 are responsible for the loss of over 100,000 lives, with financial losses over $850bn. Most are earthquake related, the majority of which were in Asia. Hurricanes have taken their toll, as well, in the US.
About 90% of the data available today has been generated in the last two years. How does data impact the insurance industry? How can the customer’s journey be enhanced through innovative solutions to make transactions swift, seamless, digital and real-time?
How can innovative risk tools transform the way risks are assessed and insurance claims are investigated and adjusted? There are new tools available to help insureds mitigate casualty, catastrophe and weather risks.
In future, underwriters will be challenged to be data scientists working quicker and analyzing risks more granularly. Today is the time to begin training tomorrow’s underwriters, who will need a whole new set of work skills to excel.
The first steel-reinforced (ferroconcrete) dock to be brought into use in Africa successfully journeyed from the Ukraine to Durban, its almost 9,000 mile journey insured by AGCS. The new dock will add 80 new jobs to the local economy.