Five structural risks and eight emerging risks for the insurance industry.
Structural risks
- Declining trust in institutions, including insurers.
- Variance in excess mortality*: uncertainty for life and health claims and reserves.
- Digital technology: mostly a liability insurance story.
- Social inflation** risks could expand liability claims.
- Ageing populations: mortality protection products at risk.
* Higher than expected death rates, primarily from COVID.
** Factors leading to increased insurance claims severity beyond that explained by economic drivers.
Emerging risks (short-term: up to 3 years)
- Extreme heat: the insurance fallouts.
- Deepfakes, disinformation and AI amplify insurance fraud.
- Hot temperatures fuel fungi growth and insurance losses.
- Challenges from adaptation to new technologies in healthcare.
- New risks from drone technology.
Emerging risks (medium-term: 3+ years)
- Plastics: a new wave of litigation?
- Emerging workforce and skill set shortages challenge insurers.
- Ultra-processed foods: health and liability risks.