Swiss Re just released its 2018 Emerging Risks Report (found here at www.swissre.com/media/news_releases) outlining the top risks facing the insurance and reinsurance industry. In my opinion, these “emerging risk” lists remind us all to take a look at your own organization and consider any vulnerabilities that may need to be addressed.
Top Five Emerging Risks:Emerging geopolitical risk: The geopolitical landscape is shifting as power drifts to Asia, democratic influences decline, and the relevance of global governance institutions erodes. Turmoil in the financial markets and possible erosion of legal rules could threaten the ability to run global businesses.
Erosion of risk diversification: National protectionism and regulatory fragmentation are jeopardizing the benefits of international diversification.
Asbestos: Not all countries have banned asbestos. The United Nations estimates that one-third of the people living in Europe are potentially exposed to asbestos at work or in the environment.
Lurking cyber risks: Some flaws in hardware and software may remain undetected for a long time. These dormant threats can have a very long tail risk.
Algorithms: An increasing number of business processes are driven by algorithms. Often, algorithms are portrayed as being objective and without human bias. But algorithmic applications are not infallible—they base their actions on human judgement as well. Discriminatory bias may also translate into defective modelling and prediction, bringing a two-fold risk to insurance and other industries.