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August 4, 2022

The CRO Forum's Emerging Risks Initiative 2022

Major Trends and Emerging Risk Radar

Original Content: CRO Forum

The CRO Forum is pleased to present the 2022 update of their Emerging Risk Radar. Emerging Risks are risks which may newly develop or which already exist and are continuously evolving. They are characterized by a high degree of uncertainty in terms of impacts and likelihood and have a substantial potential impact on Insurance business lines, investment classes and/or operations. 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.

The main trends have been assessed and updated as part of working group sessions. The “Consumer Behavior Digitization” is merged to “Demographic and Social Change”. The “Urbanization and Social Change” is merged into the “Technological Developments & Impacts on Society.”

Some new risks have been also added to the radar besides the thorough review of description of all risks in the radar:

  • Climate Engineering (incl. Carbon Capture Storage): Climate engineering, also known as “geo-engineering” is the international large-scale intervention in the Earth’s climate system to counter climate change. Currently, those techniques can be divided into two categories: 1) Carbon dioxide removal techniques (CDR) and 2) Solar geoengineering or “solar radiation management” (SRM).
  • Space Risk in Lower Earth Orbit: Lower Earth Orbit (LEO) is a critical space resource on which many aspects of our current way of life depends. Global communications systems - including satellite broadband coverage, Earth observation systems including satellite imagery and weather forecasting, and global positioning systems all rely on satellite infrastructure in LEO.

Estelle Hascoet

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.

The CRO Forum's Emerging Risks Initiative 2022: Major Trends and Emerging Risk Radar

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