As drone technology improves at breakneck speed, so do the potential commercial use cases for so-called unmanned aerial vehicles. Can the nascent insurance market in this area keep pace?
Risk managers the world over are in search of risk transfer and financing solutions to their increasingly global, complex and intangible risks but the traditional insurance market is struggling to deliver at the speed demanded. The arrival of billions of dollars of fresh capital into the ILS and cat bond reinsurance markets surely offers potential solutions for the primary corporate market as demand meets supply? Adrian Ladbury finds that the evidence is mounting that this may well be the case and we are about to witness the rise of a potentially big new market.
Business interruption (BI), including supply chain disruption, remains the top worry for Asian risk managers according to Allianz Global Corporate & Specialty’s (AGCS) fifth annual Risk Barometer survey.
There is an increased tendency for corporate insurance claims to be challenged with most disputes arising from a lack of understanding over what is covered by policies, according to Richard Ward, Chairman of loss adjusting firm Cunningham Lindsey.
Technology, supply chain and regulatory risks are the top three concerns of executives responsible for risk management in Europe, the Middle East and Africa, according to ACE’s Emerging Risks Barometer 2015.
Credit rating agency AM Best believes that high competition in traditional lines is forcing London market insurers to look for growth in emerging risk areas such as cyber, which can only be good for risk managers. But the credit ratings agency is not sure that insurers have the data needed to properly price such risks and will therefore ‘monitor closely’ potential aggregation risk and whether companies have strict loss limits in place.
The big challenges facing risk professionals in the communications, technology and media (CTM) sector came under the microscope this week at an invite-only conference hosted in Amsterdam by the global CTM practice of JLT. Speakers representing specialist underwriters, brokers and risk managers from around the world explored the diverse emerging risk issues affecting the comm-tech sector and specifically how well carriers can respond innovatively to a dynamic risk landscape when rates continue to spiral downwards
The insurance industry is willing and able to underwrite the risk of drones to facilitate the fledgling technology’s benefits despite a lack of regulatory clarity over its use.
A new report by Swiss Re rates de-globalisation, large nat cats, the ‘great monetary experiment’ and the ‘Internet of Things’ as the most potentially devastating emerging risks facing the risk transfer industry and consequently the companies it serves.