Advanced data and analytics can be used to repurpose professional and product liability for financial institutions and pharmaceuticals to boost organic growth in insurance and reinsurance, according to Malcolm Steingold, CEO of Aon Benfield.
Steingold, at the Biennial Hazards Conference in Australia, addressed insurers and reinsurers about how they can identify and capitalise on new growth opportunities amid challenging market dynamics.
He also said insurers and reinsurers should focus on the development of solutions for key emerging risks such as cyber, intellectual property and supply chain risk, and the reprivatisation of risks that were transferred to the public sector in certain regions, such as earthquake, wind, flood, terrorism and US mortgage credit.
Steingold commented: “Over the past decade, the market has become more complex with increased regulatory, rating agency and shareholder pressures. This has resulted in some reinsurers and insurers adopting a ‘zero failure’ mindset, which may seem to offer a degree of protection, but does in fact stifle innovation and growth.”
He added: “There is plenty of capital in our industry today, but there is also plenty of risk that is not currently being addressed by our industry. By developing the skills, capabilities and talent to address these risks, reinsurers and insurers will grant themselves new, long-term revenue streams.”
