Insurers ramp up emerging risk management

The management of emerging risks is a growing concern for insurers, with many setting up their own research teams to identify and monitor potential threats. Clive Davidson reports

Risk is not a static phenomenon. While many risks are familiar and the subject of years of actuarial analysis, new risks are constantly emerging. Some end up presenting little threat, while others, such as asbestos or smoking, result in enormous losses over time. Occasionally, a largely unanticipated risk strikes as if out of nowhere – 9/11 or the 2007–08 financial crisis, for example. With the practice of enterprise risk management (ERM) maturing and becoming embedded in companies’ operations