Airmic CEO Julia Graham thinks systemic risk will drive a greater risk-based focus in the insurance industry, which faces challenges to develop new solutions and respond to new risks.
“We live in an increasingly complex and connected world and the velocity of change is increasing - but the world hasn’t yet experienced a worse-case systemic risk scenario.
“Whilst the pandemic was one of the largest catastrophes ever experienced by man, and there are some estimates that pandemic related losses might ultimately cost the insurance industry up to $100 billion, it’s clear that the insurance industry cannot be expected to provide financial protection for a worse-case event.
“However, the industry has a wealth of smart people with knowledge and experience which can be harnessed to help Government and risk professionals improve our collective understanding of the DNA of systemic risks and the interventions which can be used to respond. There’s talk of the value of public and private partnerships to help us all think better and differently - let’s turn that talk into action!”