CRO Forum identifies new risks in latest Risk Radar
The CRO Forum’s Emerging Risk Initiative has released its update on emerging risks, adding Energy Storage Systems, Data Ethics, and New Insurance Competition to the 2023 update of the Emerging Risk Radar. The publication summarises emerging risks and major trends that could affect the insurance industry over the next five years.
The CRO Forum brings together a group of European chief risk officers (CROs) from insurance companies who share ideas and benchmark risk management practices. The Emerging Risk Initiative identifies and communicates emerging risks that may have significant impacts on the industry within the next ten years. NN Group is chair of the Emerging Risk Initiative in 2023, leading knowledge exchange and coordinating publication of the annual Emerging Risk Radar.
New risks for 2023
The new risks added to the Radar in 2023 are Energy Storage Systems, in the context of the green energy transition and attempts to decrease fossil fuel dependencies; Data Ethics, with growing customer awareness and the increased integration of technology into everyday life raising questions about equal access to digital resources, data security and ethics; and New Insurance Competition, as the traditional role of insurers is impacted by value chain disintermediation, embedded insurance products and services offerings, and Big Tech companies. The report also assesses and updates major trends, which largely remain unchanged compared to 2022.
Ivo Roest, manager Enterprise Risk & Integration at NN Group: ‘Emerging risks consist of new or developing risks as well as existing risks that are difficult to measure. They are relevant for the insurance industry because they can accumulate over time and they can be difficult to link to a specific cause. By monitoring emerging risks through the Risk Radar, we can develop products and services that help our customers to insure themselves against new risks.’