Look to academia to better address systemic risks, insurers urged

The Lighthill Risk Network has today called upon the global re/insurance sector to support a coordinated effort to establish and improve links with academia to improve understanding of systemic risks.

It says that some of the biggest issues that global re/insurers are grappling with today will shape the future of the market - with a particular focus on such major challenges for the non-life property and casualty insurance sectors as climate change, cyber risk and global uncertainty.

The network, which includes senior representatives from Guy Carpenter, Liberty Mutual, Aon, Hiscox, Lloyd’s and MS Amlin, wants to encourage discussion around the delivery and value of insurance.

Chief executive of the group, Dickie Whitaker said: “The drive for insurance to increase its global impact and relevance is continuous – our sector can and must help build further resilience and mitigate the impacts that risks such as natural disasters, systemic economic crashes, and emerging technology present to economies and societies.

"And the protection gap – the portion of economic losses not covered by the private sector or government-sponsored insurance programmes – is, in part, a consequence of these challenges."

Commenting on the ongoing coronavirus pandemic, Whitaker said the situation brings into sharp focus the "constant need for the insurance industry to continuously develop and refine its understanding of risk" and therefore the drivers behind decision making and insurability. "Doubtless, this crisis will impact our industry and many others in the months and years to come, and improving links with academia / insurance could help us all learn lessons and build resilience after the dust has settled."

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