The development of new technologies and scientific research are the key factors driving the growth and transformation of the risk universe, and have required re/insurers to significantly expand their “sphere of insurable risks,” according to Denis Kessler, Chief Executive Officer (CEO) of SCOR.
In his opening presentation at SCOR’s 2018 Annual Conference, Kessler discussed how the recent period of prolific technological progress has impacted all economic sectors and resulted in a new multitude of increasingly complex and interdependent risks.
However, he argued that re/insurers have historically proved successful at expanding their sphere of insurable risks to account for emerging technological risks, as for example in the case of aviation and satellites.
Kessler suggested that new technologies have also allowed re/insurers to better tackle these emerging risks by improving efficiencies, reducing costs, and transforming data collection and processing capabilities.
Developments in artificial intelligence, blockchain, and automation have allowed reinsurers to improve their efficiencies in terms of risk modelling, product innovation, distribution, customer experience, underwriting, and claims processing.
At the same time, they have supported the reduction of running costs, boosting demand and contributing the increase of re/insurance penetration, Kessler explained.
When combined with the transformative modelling and analytics capabilities afforded by new data capabilities, technologies developments will “have far-reaching impacts across the full risk-transfer ecosystem.”
Kessler added that coping with these changes will require timely innovation, investment and adaption, as well as the promotion of a new corporate culture that values a ‘trial and error’ approach to technological integration.