11th CRO Assembly Report: Technological and societal change
Population-scale adoption of new digital technologies has produced novel working patterns and business models. Communities made up of providers and consumers of goods and services, organised through computer and smartphone contact, have emerged worldwide. The biggest, like Uber and AirBnB, already rival incumbent firms in terms of market capitalisation, and the new platforms are becoming a growing part of the world economy. Popular with their members, they encounter the resistance of groups feeling threatened by them. They also create and confront challenges regarding regulation, taxation and social funding. Since advancing digitalisation entails collecting personal data, it raises questions of privacy and trust. Fundamental differences between the restrictive European approach to data protection and the more open American view complicate the issue. Cyber risk is on the rise as digitalisation increases, with cyber security gaining importance as a safeguard and an important enabler for growth. The transformation of technology and work is accompanied by political and energy concerns and is occurring against a background of ageing populations and shrinking workforces. The associated difficulties regarding provision for old age and long-term care are daunting. Will the insurance industry maintain its – still undisputed – relevance in the shifting landscape of technological and societal change? The challenges are tough. The property protection gap is enormous and growing; economic risks stem from Chinese reform, European political uncertainty and diverging central bank policies. Some products will be directly threatened. Motor insurance is likely to change radically, for example, when robocars come on the market and product liability replaces personal liability, with some manufacturers probably opting for self-insurance. The future offers opportunities for insurers too, especially in the retail area. New offerings, new partnerships and deployment of the latest technologies will be key to success.