The world is riskier – insurers must step up: Marsh CEO
The world is certainly riskier than it was, but that also represents an opportunity for the insurance industry to step up and help clients better manage and hedge these risks – but to do this, it must also innovate and take a more holistic approach.
That was one of the takeaways of a Global CEO fireside discussion called ‘Global forces driving change: a future outlook’, which took place on the first day of Airmic’s annual conference, being held in Edinburgh this week.
The session featured Martin South, president and chief executive officer, Marsh, being interviewed by Penny Randall Seach, group chief underwriting officer, Zurich Insurance Company.
Seach framed the conversation around the importance of collaboration, partnerships – and building resilience. She noted that the risk landscape is evolving – and the risk-transfer industry must keep pace and evolve as well.
South agreed that the world is risker but also noted that the tools for managing risk have improved too. “We hear all the time the world is risker than it has been – whether that true or not is nuanced and needs analysis. Yet we also have better tools to manage these risks.”
He cited geopolitical turbulence including two major conflicts as one of his top concerns. He also noted that the importance of AI will continue to develop, describing it as a “toddler” at the moment in terms of its development. “There are big questions around that,” he said. He also said cyber risk remains a concern.
Given the changing nature of risk, he made the point that for several decades companies have focused on effectiveness, not resilience. “That has changed now. Supply chains and the resilience of businesses around the world need to be looked at very carefully,” he said.
But he stressed all this also means it is a great time to be in the risk profession. He said he sees a real opportunity for the insurance industry to step up and make a difference to clients – and also for risk managers to play an ever-more importance role within their organisations.
“There is an opportunity for the risk manager to be the voice in the c-suite to flag these new, evolving risks but to also offer solutions,” he said. “And it is the insurance industry’s role to show them the tools and solutions that are at hand. It represents a big growth opportunity – for people’s careers and in terms of the the role we can play as an industry.”
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