Developing our ability to anticipate tomorrow's risks is a key issue.
« Unknown unknowns »
Emerging risks are newly developing or changing risks that are generally characterized by major uncertainty. This uncertainty is partly derived from the lack of historical data that characterizes them but also from scientific-technological, socio-political or regulatory changes that can create discontinuities in their evolution.
Anticipation, Innovation & Prevention
To complement traditional risk management methods that consist in quantifying the future frequency and severity of known risks, it is an insurer's role to anticipate new risks. The objective is to insure its long-term commitments towards its clients and by strengthening in-house preparedness for risks that might emerge in the years ahead.
For an insurance business, risk and innovation are closely interconnected. Insurers need to constantly adapt to their clients' quickly evolving risk landscape and put in place the most relevant solution.
The prevention role that must be taken on by an insurer is brought to the fore when it comes to emerging trends. By alerting on changing risks the insurer plays a key societal role.
AXA is part of the CRO Forum Emerging Risks Initiative, which was launched in 2005 to raise awareness on major emerging risks relevant to society and the (re)insurance industry. The Forum is a group of professional risk managers that focus on developing and promoting industry best practices in risk management. Click here to view its latest publications: CRO Forum Emerging Risk Initiative.