May 31, 2021
The CRO Forum is pleased to present the 2021 update of their Emerging Risk Radar. The Radar is a summary of emerging risks and associated major trends that could affect the insurance sector over the next five years and beyond. Risks are classified low, medium or high according to their perceived materiality. Both the list of risks and the assessment of impact and timing are based on the expert opinion of the Emerging Risk Initiative (ERI) working group of the CRO Forum.
In addition to the effects of the pandemic, a recent focus was particularly on the increasing importance of ESG topics. This is a long-term trend that applies to many areas of the insurance industry. This circumstance was taken into account by including ESG Issues in the “Major Trends”.
Some new risks have been added to the radar:
In order to improve the clarity of the radar, efforts have been made to cluster risks and to combine them where appropriate. Therefore, the risks “GMOs” and “Synthetic Biology” have been included under the heading “Genetic Engineering”. The new title “Resource Management” includes the old risks “Resource Scarcity” and “New Frontiers for Resource Extraction”. 3D printing has become fully established in the industry in recent years and has transitioned into insurance as a standard risk. Therefore, it is no longer included in the risk radar this year.
Group Head of Emerging Risks
AXA has been an active member of the CRO Forum Emerging Risks Initiative since its creation in 2005. The initiative provides a forum for AXA and our peers to exchange ideas on new trends and emerging risks that may significantly impact our industry in the future. With this Radar, we aim to help everyone better understand what lies ahead. This year, we added Mental Health risk to the Radar and we’re currently leading a workstream of the CRO Forum dedicated to this major challenge, so stay tuned!