Physical climate risks associated with extreme weather events are increasing due to climate change.
Insurance relationships are fundamentally built on trust between insurers and their customers. Customers trust that insurers will act in ways that ensure their solvency and that they will promptly pay claims when they are due; insurers in turn trust that policyholders will make sure to minimise their risk after signing a policy and that any claims they make will be genuine. Certain shifts such as digitalisation, however, may pose a threat to customer trust as concerns around data privacy, misuse of information and bias or discrimination arise.
Special issue summary
By providing underserved, low-income populations with protection against risks to their livelihoods and health, microinsurance helps poorer segments of society increase their resilience to adverse events. Despite significant development in many emerging markets in recent years, however, large protection gaps remain, many of which have been and will continue to be exacerbated by COVID-19.
Cyber risk is one of the most pertinent global threats facing the world today. With firms’ and individuals’ reliance on technology only set to increase, the frequency and severity of cyber incidents is likely to rise in turn. The cyber insurance market is set to undergo significant growth in the coming years, accelerated by increasing levels of liability and data protection regulation.