New and Emerging Risks to be aware of

Hold on to your hats, a new wave of disasters are about to hit

There are disasters that are new and unique that could occur in coming years that may or may not have insurance solutions around them.

As Risk Managers and advisors identify new risks to handle, they need to be measured and then they determine whether they can be transferred away or managed in some other way.

One of the places you can transfer your risks to are Insurers, however they will not accept any such risks without determining their Insurability.

There are a number of criterias for Insurability which are discussed elsewhere but not all meet these requirements. Some we are watching to see how they develop. Others we are attempting to control the risks but are impeded by a lack of knowledge about them. All at the same time as Insurers are seeking to be innovative and market leading. Ah the free enterprise system is a wonderful thing.

So what are the new wave of risks we need to be aware of? To sum it up briefly, whenever there is new technology, changes to the climate or changes to the law, then we see new risks come about. Modern Risk Managers and Risk Advisors need to be aware of these and continue to discuss these with their employers or clients. It is an ever changing world we live in.

New and Emerging Risks

We can categorise the new and developing areas of risks into the following main categories.

Then there are the regular risks which are expanding to accommodate new and emerging industries. We have see Professional Indemnity start to expand to take on areas not traditionally considered “professional classes”. Public Liability Insurance being tested by different Court decisions. As they are negligence based claims, Courts can set new precedents which can cause underwriters to panic and react accordingly with either price increases or simply a withdrawal from the market. They may tighten up their policy wordings by specifically restricting cover, or they decide to expand on the cover and offer this as a unique alternative that must be considered by any purchaser of cover.

One thing though, is there no doubt a combination of competition, a developing world and increased knowledge continues to keep insurance dynamic and interesting. This is why us Insurance Brokers keep saying, we never stop learning.