Ahead of the IFoA Asia Conference 2024 Chadwick Cheung, Jingwei Jia & Regina Wang, panellists in our sixth plenary session, give a preview of "Navigating the uncertainties: how (re)insurers can better manage the emerging risks most relevant to their businesses"
In an ever-changing world of uncertainty, ensuring the long-term success and operational resilience of risk management as well as fully considering future aspects become critical. While managing risks for customers, it is imperative that (re)insurers manage their own risks, in particular emerging risks.
We are honoured to have received an invitation to speak at the IFoA Asia Conference 2024 and share our insights into how (re)insurers can better manage emerging risks.
Emerging risks are those that are not yet fully understood or have not yet materialised. These risks can arise from various sources such as technological advancements, regulatory changes, climate-related events, or shifts in consumer behaviour. It is a key part of risk management to assess and manage emerging risks; as they have the potential to disrupt traditional business models and pose significant challenges to serving policyholders the best way possible. They will also gradually reshape our societies, economies, and environments over time.
One common misconception about emerging risks is the belief that it is almost impossible to assess and be prepared for them. Whilst it is certainly challenging due to the uncertainty on how emerging risks evolve, (re)insurers can adopt a forward-looking approach that incorporates scenario analysis, diverse data points, and expert judgment to effectively evaluate emerging risks; describing both the short-term risks in different dimensions and long-term risks under various scenarios.
In addition to identification and assessment, communication and awareness also play an essential role in effectively managing emerging risks. It is not enough for risk professionals to understand and address these risks; they must also effectively communicate their findings and business implications to stakeholders in other departments, as well as to subsidiaries within the group organisation. By fostering a culture of risk awareness and ensuring that emerging risks are on the agenda at the highest levels, companies can enhance their ability to respond swiftly and effectively to emerging threats as a whole.
In a world of constant change and uncertainty, managing emerging risks has become a strategic imperative for insurance companies. This presentation will discuss the needs for taking immediate action on the management of emerging risks, views on how emerging risks impact the insurance industry, and our experience helping insurers in this domain. We look forward to sharing our insights and hearing your stories on this topic!
While emerging risks as a topic is a highlight of this Conference, there are other sessions that we very much look forward to joining. One such session is on the effective governance of the use of artificial intelligence (AI). How AI will shape the future of the insurance industry and the role of actuaries is, in itself, an emerging risk. On the other hand, AI promises to innovate the insurance industry; delivering many opportunities as we understand more about technology.
Join Chadwick, Jingwei, Regina and actuaries from across the Asia-Pacific region learn more about 'Tomorrow’s actuarial science' by booking your place at the IFoA Asia Conference 2024.
