Swerma to focus on AI and ESG in 2024
Insurers warned about reducing capacity in certain lines while reporting large profits
A look at the priorities of Sweden’s risk management association (Swerma) may at first seem like a flurry of acronyms – from AI to ESG to CSRDDD – but in reality they are a reflection of the so-called polycrisis affecting European companies.
The unstable geopolitical environment, the rise of artificial intelligence (AI) and increasing regulatory requirements were all covered in Swerma’s annual risk forum, reflecting the biggest concerns of its members, according to the association’s president Karl-Johan Rodert.
“As you can see in the United Nations’ World Risk Report, and the sessions at Risk Forum, the risk that keeps risk managers up at night is probably geopolitical tensions and wars and the unforeseen events and disruptions they cause,” said Rodert, who is also global director for captives and insurance at Swedish vehicle manufacturer Autoliv, told Commercial Risk Europe.
Disruption is also a concern among risk managers as a result of new technology, especially AI, which was covered in a session at the Risk Forum led by Göran Lindsjö and titled ‘How the AI revolution affects society, the insurance industry, risk management and leadership’.
In essence, the conclusion of risk managers at the event is not that people are going to lose their jobs to AI but that they will lose them to another human who is better at using AI than they are. And the use of AI as a labour-saving tool could be integral to risk managers given the poly crisis.
Rodert also rejected the idea that the current situation raises the prospect of risk management overload. Instead it is a chance for risk managers to take advantage of their rising prominence.
“To be prepared as a company and flexible to the ever-changing environment with the world’s polycrisis situation is a good thing and should be embraced. But let’s not mix up two things – risk management and administration/documentation.
“Some organisations tend to over-administer, focusing on documentation and reporting rather than the actual risk management and embracing a risk-based work culture throughout the company. The key is getting every employee to start thinking about risks, both in their own work and how their work can affect the company. That will both create opportunity and avoid risk,” said Rodert.
He also had a word of warning for insurers about reducing capacity in certain lines while reporting large profits. “Many insurers are showing record earnings and profits in their reports, and if this is not transferred back to their customers, I believe the trend of more ART (alternative risk transfer) and captive involvement will just continue,” said Rodert.
