Aon Benfield has identified seven emerging risks that could present reinsurer and insurers with business opportunities over the next five to 10 years.
Speaking at Aon Benfield’s Biennial Hazard Conference in Australia, Stephen Mildenhall, CEO of Aon Analytics, will describe how a history of successful risk management has dampened demand for existing risk products, amid declining frequencies in road fatalities, property fires and medical professional liability payments in many countries over the past decade.
But developments in the global economy provide an opportunity for insurers through new areas of emerging risks, specifically, US mortgage credit, the sharing economy, reputation and brand, micro insurance, corporate liability covers, terrorism cover and cyber.
The emerging risks identified by its Global Insurance Market Opportunities report include exposures that are intangible, yet nonetheless can have a considerable impact on balance sheets, income statements and shareholder value.
Mildenhall commented: “Risk owners are demanding new solutions for these emerging risks as they work to grow their businesses. This in turn represents opportunities for international insurers to grow through increasing the relevance of their insurance products.”
“By investing in data and analytics, insurers will be able to grasp the potential around growth, geographic expansion and market feasibility.”
