Anticipate External Drivers
Climate change is a major worry for insurers at all levels, with each year warmer and more volatile than the last. Coupled with a trend toward urbanization of coastal areas, the risks to property and human life will only increase. Cyber risk is and will continue to be a significant challenge for which the industry lacks historical data. This makes pricing cyber risk policies particularly difficult. Technological changes present another source of uncertainty, with private innovation proceeding at a pace that governments can’t match. This introduces gray areas for behavior that make it challenging to assign liability. With Lumivero's solutions, insurers can run simulations of different scenarios to determine the likely outcomes of different decisions, so they can choose the level of reinsurance most likely to produce a positive outcome.