Lloyd’s looks to tackle systemic and 'black swan' risks with new global platform

Re/insurance marketplace Lloyd’s of London has launched a new openly accessible global platform to drive greater societal and economic resilience to the growing systemic and so-called 'black swan' risks. Futureset has been developed in response to the large and complex challenges, as well as the impacts arising from the COVID-19 pandemic and climate change.

The corporation highlighted that there's an "urgent need" to begin a new, connected conversation with customers, insurers, and government to tackle the challenges these risks bring.

It noted that the pandemic has highlighted gaps in the knowledge, understanding, and mitigation of systemic and 'black swan' risks with potential impacts that are materialising and evolving at a rapid pace.

The platform, Futureset, intends to bring together diverse perspectives of industry leaders from a variety of sectors on the most complex and fast-changing risks faced by communities, businesses and countries globally.

By leveraging cutting-edge risk insight, intelligence, and encouraging cross-industry dialogue, Lloyd’s Futureset aims to build greater societal understanding and collaboration to find sustainable solutions and support greater preparedness, protection and resilience to these growing and interconnected risks.

Throughout 2021, Futureset will focus on the landscape of systemic risks, including exploring lessons learned from the pandemic, as well as examining the growing and global risks brought about by climate change.

Futureset will launch with a six-part Systemic Risk Masterclass series, developed in partnership with the Chartered Insurance Institute (CII) and Lloyd’s Market Association (LMA). It will bring together experts across industry, academia and government to help insurance and risk professionals develop their knowledge and expertise in systemic risk.

As part of the initiative, Lloyd’s will also launch a video-series bringing together industry leaders from a variety of sectors to explore the specific challenges associated with systemic risk.

John Neal, CEO of Lloyd's, said: “The COVID-19 pandemic has shown that a hypothetical systemic risk, is never far from becoming a reality and that we must do everything we can to prepare and mitigate against the worst impacts of the constantly changing and challenging risk landscape.

“As the world turns to recovery, Lloyd’s has a unique position and opportunity to bring together communities, businesses, insurers and governments to find solutions to those risks that threaten our shared future. The launch of Futureset sets in concrete our commitment to be a catalyst for action, and in doing so empowering innovation, economic growth and human progress around the world.”

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