Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • October 2015
10

Seven emerging risk opportunities for insurers and reinsurers

Open-access content 8th October 2015

Insurers and reinsurers could potentially capitalise on seven emerging risks over the next five to 10 years, according to a report.

2

They are: US mortgage credit; the sharing economy; reputation and brand; microinsurance; corporate liability covers; terrorism cover; and cyber risk.

The report Global Insurance Market Opportunities, published by Aon Benfield, said many of the emerging risks included exposures that were intangible, but could impact balance sheets, income statements and shareholder value.

Aon Benfield said during the financial crisis, companies that acquire mortgages and sell them to institutions such as government-sponsored enterprises began sharing default risk. 

It said these enterprises were transferring US mortgage market risk in a series of reinsurance transactions, with the potential demand for $6bn (£3.9bn) of reinsurance limit annually. 

With individuals renting out personal assets for money in direct competition with established businesses like hotels and taxis, the firm said this "sharing economy" highlighted an opportunity for insurers and reinsurers to fill the gap between personal and commercial risks.

On microinsurance, which provides coverage to low-income households, the report said it could offer access to four billion potential new customers. It also said there were opportunities for long-term growth as "developing economies gradually become more affluent".

The firm also explained reputation and brand was the number one risk identified, based on a separate survey of 1,400 respondents, indicating demand for this cover. On cyber risk, the firm said businesses saw hacking and computer crime as one of the top 10 risks for the first time. 

Some losses resulting from directors' and officers' liability, major incidents such as oil spill and similar causes are "potentially insurable", it said. Therefore, corporate liability offers opportunities for firms to provide cover for losses of more than $1bn (£654m). 

Meanwhile, insurers could offer terrorism cover by leveraging military-based technology to better understand this risk and improve model competencies.

Stephen Mildenhall, CEO of Aon Analytics, said: "Risk owners are demanding new solutions for these emerging risks as they work to grow their businesses. This in turn represents opportunities for international insurers to grow through increasing the relevance of their insurance products."

This article appeared in our October 2015 issue of The Actuary.
Click here to view this issue
Filed in:
10
Topics:
Reinsurance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Bermuda - Actuarial & Investment Career Opportunities

Bermuda (BM)
Excellent salary and bonus in an ultra-low tax environment
Reference
120019

Big 4- Assistant Manager; Student Actuary - Life

Bristol (City Centre)
+Excellent study support and generous package
Reference
120047

Big 4 - Life Actuarial Manager

Bristol (City Centre)
Generous benefit package
Reference
120046
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200