This article explores the changing nature of risks, the analytics that risk managers expect from their insurers and brokers as well as touching on the next generation of technology driven change.
This is not just a challenge for retail insurance as it will also impact the specialty insurance market currently centered around Lloyd's and London.
As we enter the 4th industrial revolution Cyber-Physical Systems will transform the world of risk, enabling autonomous mobile systems, medical monitoring, process control systems, robotic systems and automatic pilot avionics - to name just a few.
The question is will this new, hyperconnected world create the burning platform for transformative change in the London market’s products, services and processes…or is it simply too late?
Michelle Tuveson, executive director of the Cambridge Centre for Risk Studies, agrees: “Risk management and its supporting research will need to expand to address the demand for greater clarity in modelling and communicating collective risks and foreseeable harm that corporations might face in the future, and better understanding their financial implications. ” “Organisations that lead in identifying and assessing risks that today are both non-standardised and foreseeable will indeed be creating a competitive advantage.”