Posted on: 30 January 2023
The global insurance market is no stranger to significant unanticipated events, including the catastrophic effects of natural disasters. The losses sustained as a result of such events means that the sector has to adapt, by reviewing the scope of cover it provides, the manner in which it approaches risk assessment and how it prices its products in order to continue to remain relevant and thrive in a global marketplace. The potential threats of today mean that insurers need to understand and prepare for the risks of tomorrow.
The experiences of recent years suggest that unexpected events are becoming increasingly widespread. Our analysis reveals specific key drivers prevail: environmental, social and governance (ESG) risks, geopolitics, technology change and claims inflation. Alongside ever-present natural disasters, the industry continues to navigate the aftershocks of the COVID-19 pandemic, as well as the war in Ukraine and the current economic climate.
Consequently, understanding the key trends driving claims activity across different lines of business is vitally important.
Gaining insight from recent claims experience and embracing innovative technology should afford insurers and reinsurers the opportunity to identify and implement more effective loss prevention measures.
Insurance forecast 2023: claims trends and future risks report can be downloaded here.
