The risk function of the future
Article Actuarial Post by Ed Harrison, Principal at LCP
The risk landscape is changing faster than ever. Insurers are at the forefront of helping their policyholders manage risk. Therefore, it is critical that insurers adapt and evolve their own approach to managing risk in an increasingly interconnected, fast-moving and volatile world. We have explored the drivers of change and the ways in which the risk function needs to evolve in our “Risk Function of the Future” report, based on conversations with over 50 CROs from across the market.
The changing risk landscape
Our research identified five key “megatrends” which already influence the risk landscape today and which we expect to drive the most change over the next decade. These are:
• AI and technology
• Geopolitical risk
• ESG (including climate change)
• Social and cultural change
• The Interconnected world
