The value of GDP at risk from commodity price shocks, extreme weather, power outages and pandemics has risen, according to research published today by Cambridge University. It suggests that as much as £443bn, or 1.55% of GDP, could be wiped off the global economy by catastrophic events in 2020.

Working with operational risks is not a tick-in-the box exercise. A structured team works with operational risks and incidents leads to a better risk culture, increased efficiency in the organisation and creates business value. The Financial Conduct Authority is increasingly undertaking independent reviews of regulated firms which are focused on risk culture. However, while the FCA guidelines on risk culture set out the principles to be followed and how to define, measure and manage it, there is no practical guidance on how to embed a sustainable risk culture in operational systems.

Insurtech futurologist at Guidewire Software and TedTalk speaker, Laura Drabik has these thoughts on how 2020 will see closer relationships between insurers and insurtechs focused on customer convenience:

Will 2020 remain a period of change and instability, and will that bring significant challenges? I believe it will, and there are many drivers for this.

Confidence is predicted to remain low among UK-based professional services firms in 2020. Only 34% (just over one third) expect to feel confident in their ability to grow and prosper in 2020, while 80% believe they will be operating in a moderate to high risk environment.

Industry research suggests environmental and climate change remains a top of mind risk for global insurance CEOs. This is not a surprise given the number of severe disasters in recent years, from floods, hurricanes, typhoons, droughts and wildfires. So, the sector must continue to be heavily involved in managing the risk.