The CRO Forum's Emerging Risk Initiative has released its update on emerging risks, adding Energy Storage Systems, Data Ethics, and New Insurance Competition to the 2023 Emerging Risk Radar update. The publication summarizes emerging risks and key trends that may impact the insurance industry over the next five years.
The CRO Forum brings together a group of European chief risk officers (CROs) from insurance companies who share ideas and benchmark risk management practices. The Emerging Risk Initiative identifies and communicates emerging risks that may have a significant impact on the industry within the next ten years. NN Group chairs the Emerging Risk Initiative in 2023, leading knowledge exchange and coordinating the publication of the annual Emerging Risk Radar.
New risks for 2023
The new risks added to the Risk Radar in 2023 are Energy Storage Systems, in the context of the green energy transition and efforts to reduce dependence on fossil fuels; Data Ethics, with growing awareness among customers and increasing integration of technology in daily life, raising questions about equal access to digital resources, data security, and ethics; and New Insurance Competition, as the traditional role of insurers is being impacted by value chain disintermediation, embedded insurance products and services, and large technology companies. The report also assesses key trends and updates largely unchanged from 2022.
Ivo Roest, Manager Enterprise Risk & Integration at NN Group, said: "Emerging risks consist of new or developing risks and existing risks that are difficult to measure. They are relevant to the insurance industry because they can accumulate over time and are difficult to link to a specific cause. By monitoring emerging risks through the Risk Radar, we can develop products and services that help our customers insure against new risks."
Download the full report on the CRO Forum website.
