Partnerships key to navigating complex risks: Swiss Re

Some of the reinsurance industry’s top challenges include the need to deal with the transformative influence of artificial intelligence (AI), the urgency of climate action and the evolving cyber risk landscape. But partnerships will be key to addressing these challenges, according to Anne Lohbeck, a member of the P&C Reinsurance Management Team and chief underwriting officer for specialty at Swiss Re.

Speaking at the opening of the third day of the Singapore International Reinsurance Conference, she highlighted the multifaceted obstacles faced in moving toward cleaner energy sources. 

“Efforts to transition to a green economy continue to face challenges in a complex risk landscape, from investment in project construction to geopolitical shifts impacting the supply of rare earth minerals,” she told delegates. 

These challenges, she stated, necessitate “an innovative approach to risk management and product development” to bolster investments and protect the renewable energy sector. 

Lohbeck cited data from the Swiss Re Institute, which projects that investments in green energy could lead to “additional energy sector-related insurance premiums of close to $240 billion by 2035”. 

The Asia-Pacific region, she argued, is uniquely positioned to drive significant progress, a sentiment supported by the Asian Development Bank’s estimate that nearly $2 trillion is needed annually in infrastructure investments to foster growth and combat climate change. This scenario presents what Lohbeck described as “a tremendous opportunity to build a better region for everyone”. 

“Efforts to transition to a green economy continue to face challenges.”

Adopting AI

The transformative role of AI and data was another key theme of her speech. Lohbeck stressed that the insurance sector has been an early adopter of AI, leveraging it to enhance processes like underwriting, claims management, and risk assessment. 

“The biggest advantages so far have emerged in claims and operations,” she said, highlighting AI’s ability to streamline procedures, enhance fraud detection, and improve customer experiences. 

For example, Swiss Re’s rapid damage assessment platform uses AI-enhanced catastrophe models and satellite imagery to make swift, data-driven claims decisions, as demonstrated during natural disasters in Florida. 

Despite these advances, Lohbeck cautioned that adopting new technology is not without risks. “Malfunctions, copyright violations, faulty advice, and data bias” were among the potential pitfalls she outlined, emphasising the need for balanced risk management in AI applications. 

“The AI threat-opportunity equation deserves our careful consideration,” she added. She stressed that industry professionals must be vigilant and proactive. 

The evolving cyber landscape represents another big challenge. Lohbeck revealed that the cyber insurance market currently accounts for only 2 percent of premiums, but growth is accelerating. Global premiums are expected to reach $16 billion by 2025. She emphasised the size of the significant “cyber protection gap,” especially for small and medium-sized enterprises (SMEs), where coverage gaps exceed 90 percent. 

The cost of cybercrime which, she noted, approaches “almost $10 trillion a year”, underscores the urgent need for comprehensive risk management strategies. Reinsurers play a vital role in supporting SMEs and larger enterprises alike by providing data-driven underwriting and helping clients strengthen their cyber resilience. 

Lohbeck stated that Swiss Re is committed to a “long-term approach with our partners” to ensure the sustainability of the cyber insurance market. 

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