The European Talk show for Risk and Insurance professionnals
We are currently living with an unsustainably high level of risk, which is only growing in its interconnectivity and complexity. There is no silver bullet for building resilience to the systemic risks we face, but as a global community of risk engineers, insurers have a pivotal role to play not only by transferring risk, but by aligning incentives and using their unique position in the financial system to create an enabling environment of risk mitigation and management to prepare society for the impacts of future catastrophes.
The disruption and tragedy of the past 18 months must be a catalyst for rebuilding a more sustainable, inclusive, and resilient future. We can no longer continue to sleepwalk towards a ‘perfect storm’ of systemic risks; rather, we must build new partnerships and business practices which harmonise a “triple bottom line” of profit, people, and planet and meet the needs of our customers as a result.
Pandemics, along with certain risks associated with rapid technological change and climate change, are examples of correlative, complex, systemic perils which the traditional insurance model largely excludes. But these are the perils against which society and businesses now require protection, and only governments have the financial resources capable of putting enough resilience into the system. As natural catastrophe and terrorism pools around the world have demonstrated, collaboration between governments and insurers can facilitate the creation of viable insurance markets that can offer broad, affordable coverage for risks that are rightly considered ‘uninsurable’ without governments’ involvement. The pooling of risk also allows insurers to invest in R&D, academic partnerships, modelling and other things the industry does well so as to enable risk management and mitigation.