Risk engineering key to managing climate and technology risks

Collaboration and risk engineering are becoming increasingly important as decarbonisation and technology change corporate risk profiles, according to Chubb’s head of industry practices. More and more companies are seeing their risk profiles change as they adopt new technologies and transition to a more sustainable and low-carbon future, explained Louise Joyce, head of industry practices at Chubb. The unit focuses on specialist sectors like technology, real estate, life sciences, media and climate technology. Chubb is increasingly working with its clients in these sectors that are introducing new technologies or changing business practices as they decarbonise. As a result, risks are becoming more complex and challenging, requiring greater collaboration with brokers and clients, as well as more specialist knowledge and expertise in underwriting, claims and risk engineering, according to Joyce. Underwriters need to understand how new technology is used and how it changes the risk landscape for clients. “Things we may think of as futuristic are happening today. For example, a human remotely controlling a robot or using virtual reality to carry out surgery in a hospital, or driverless vehicles. These are things that are happening today, and that change the risk landscape. What might be a medical malpractice or a motor claim today could be a product liability claim tomorrow,” said Joyce. Chubb clients are also seeing their risk profile change with climate change and the green transition. The transition is high up on risk registers. Many firms are now having conversations with their insurers and brokers about their plans and how they will affect their risk profile, according to Joyce. A growing number of start-up companies are developing innovative sustainable products and services, like vertical farming, alternative meat products and rain water harvesting. Even established green technologies like solar and wind continue to develop, while familiar areas like electric vehicles continue to advance. Risks are also emerging as companies transform their businesses in a bid to be more sustainable. For example, many companies are looking to increase the lifespan of products, which is seeing some take on additional risks as they add maintenance and repair services. It is important that insurers do not stifle such innovation but support clients with dedicated underwriting and risk engineering, said Joyce. Chubb, for example, has a group-wide climate division to support clients through the transition. More specialist risks require greater communication and collaboration, as well as investment in resources and intellectual capital to understand the risk landscape, said Joyce. “Being more specialist allows us to be laser focused and have people with industry expertise that understand clients and their future plans constantly reviewing insurance products. Risks are not static and we need to support clients with risk engineering and take a collaborative approach with brokers and clients,” said Joyce.

Risk engineering key to managing climate and technology risks

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Want to read this article?

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