The reinsurance industry should go back to school.
To be specific, the reinsurance industry should be seeking dialogue with academia, the insurance industry, government and corporations to find relevancy with their customers. That’s the message Aon Benfield is sending to attendees of the 14th Biennial Hazards Conference this week.
In fact, the conference was designed to provide just that interaction. The hope, according to an Aon Benfield release, is that a regular meeting of the industry minds will help reinsurers as well as other industry leaders, understand how each one fits into the shaping of the industry now and in the future.
Big data, evolving market trends, and challenges brought on by increasingly advancing technology are key discussion points, as is the state of corporate resilience in planning for future risks.
Ahead of the conference, Aon Benfield released its list of what they deem to be the seven key emerging risks. Stemming from the firm’s Global Insurance Market Opportunities report, the list includes:
- 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 giga losses, 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.
Held in Sydney, Australia today through Thursday, the conference is focusing primarily on ways to improve risk management globally.