Page 4 - WIR 2019 eBook

World Insurance Report 2019 Interactive eBook

The Evolving Risk Landscape Emerging risks grab the attention of the insurance industry

More frequent natural disasters, cyber risk, soaring healthcare costs, geopolitical conflicts,
and changing employment patterns. These emerging risks, along with others, are rapidly
altering the risk landscape as we know it.

Macro trends such as technological advancements and disruptive environmental patterns are
driving the emergence of these high-impact new risks affecting people’s health, property or
businesses worldwide. These risks present challenges for insurers, as they are accompanied by
large influxes of claims, as well as customers seeking more comprehensive coverage in their
personal or business insurance policies. But they also provide opportunities for insurers to
satisfy unmet coverage needs of their customers.

Take an increase in natural catastrophes, for example. While individuals’ health and lives are at
risk, businesses have to deal with damage to property, as well as loss in productivity and work
interruption. Insurers will face an increase in NatCat, property, life, health, liability, and Source: Capgemini Financial Services Analysis, 2019; SONAR 2018 & 2017,
business interruption claims. Rising life expectancies bring individuals a requirement of long- Swiss Re; Emerging Risk Survey, AXA; The Global Risks Report
2018, World Economic Forum.
term healthcare, which can put a stress on expenses and possibly deplete savings. For insurers,
longevity can bring higher claims in long term care and health insurance. However, the “silver
tsunami” phenomenon can also be advantageous for life insurers.

With increasing competition from customer-centric InsurTechs and BigTechs on the horizon,
insurers must act now. By foreseeing policyholders’ needs and creating innovative products Impact of Emerging Risks on Customers and Insurers
and services that comprehensively meet these needs, insurers can maintain their position in
a fast-paced, rapidly changing industry.

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As the risk landscape evolves,
a vast majority of policyholders
say their coverage is insufficient.
View the World Insurance Report
2019 video to learn how insurers
can fill the coverage gap.

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AXA launched a parametrics offer only four years ago that focuses on climate findings with our quick-read infographic.
risks. Yet, potential business with this operating model is massive. Cybersecurity,
health, and mobility are also growth areas for AXA Group.” — Antoine Denoix
CEO, AXA Global Parametrics

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