Insurance

It’s an exciting time to be involved in the insurance sector, which is impacted by two global buzzwords: climate and AI.  
Insurers are viewed as part of the solution to the threats posed by climate change.  This may be through (i) the creation of innovative products that not only protect against the increasing occurrence of physical risks, but also drive mitigation and adaptation practices, (ii) working in partnership with the public sector to leverage insurers’ risk expertise, or (iii) through the unleashing of capital to support sustainable growth.    

As regards AI, for an industry so reliant on data and analytics the opportunities this technology presents are innumerable. This is not lost on the sector, which is set to see the biggest uptick in the use of machine learning tools within the financial services sector over the next three years. This is expected to feed into the manner in which risks are assessed and underwritten, policies are priced and distributed, and the manner in which claims are made and settled, creating an ever more specialised and bespoke customer journey.

Against this exciting backdrop it should, of course, be remembered that the general regulatory environment for insurance market participants is constantly evolving.  This may of itself present insurers and brokers with new opportunities, but it does of course bring with it a new set of risks to manage.