Actuarial Post "Aon's 7 emerging risk opportunities for insurance growth”
The seven key emerging risks identified by the report comprise:
- U.S. mortgage credit: Freddie Mac and Fannie Mae are transferring U.S. mortgage market risk in a series of reinsurance transactions, with the potential demand for USD6 billion of reinsurance limit annually.
- Sharing economy: with individuals renting out personal assets for money in direct competition with established businesses like hotels and taxis, coverage gaps highlight an immediate opportunity for re/insurers to offer policies which span personal and commercial exposures.
- Reputation and brand: the #1 risk identified by the 2015 Aon Global Risk Management Survey.
- Microinsurance: offering access to four billion potential new customers, and with opportunities for long-term growth as developing economies gradually become more affluent.
- Corporate liability: opportunities for re/insurers to provide cover for
gigalosses, which require more than USD1 billion of reinsurance limit.
- Terrorism: leveraging military-based technology to better understand this risk and improve model competencies, such as accounting for factors that mitigate blast zone damage.
- Cyber risk: as data and analytics improve, Aon forecasts that cyber risk will move from complex and undermanaged into the insurance mainstream, where markets can adequately price and transfer risk.