Commercial Insurers Facing a Perfect Storm

Abstract

Geopolitical tensions, technology risk, and climate change rank currently as the topmost risks faced by the world due to the increase in their likelihood of occurrence and severity of impact. Though each risk in this triad has long existed, how they are changing now and gaining strength makes them a cause of concern. With simultaneous evolution, emergence of mutated and new variants, as well as their confluence, these risks are manifesting in unfathomable ways. The intertwining and metamorphosing nature of the risk-triad exacerbates the complexity and indicates the making of a perfect storm of unprecedented uncertainty. This paper analyzes the impact of the risk-triad on commercial insurers.