Emerging Commercial insurance risks & Sustainability

TL;DR

Insurance industry expert Sabine Van Der Linden discusses the importance of commercial sustainability and its impact on the insurance industry, highlighting the need for insurers to adapt to changing risks and customer demands.

Transcript

foreign [Applause] o and today I have the pleasure to reconnect after a while with the Sabine Van Der Linden Sabine is well known in the industry she is one of the big influencers Tech influencer she's the queen of Ensure Tech as they as they say and and for the audience that doesn't know more details uh Sabine is the CEO and co-founder of alchemy ... Read More

Key Insights

• 👨‍💼 Sustainability is a critical focus area for insurers, encompassing ESG criteria and reshaping business models to address changing risks and customer demands.
• 🫥 External data sources, such as weather forecasts and satellite imagery, are being leveraged to improve risk assessment, pricing, and customer education in personal and commercial lines of insurance.
• 🎁 The protection gap presents a significant challenge, and insurers are exploring parametric insurance and partnering with startups to develop innovative solutions.
• ✳️ Climate tech companies play a vital role in addressing climate-related risks, providing insurers with valuable data and insights for better underwriting and risk management.
• 🐕‍🦺 Insurers are slowly adopting a more proactive approach to risk prevention and mitigation, offering value-added services and becoming trusted partners to customers.
• 😚 Business models in the insurance industry are evolving to incorporate responsible underwriting, disruptive technologies, and closer collaboration with asset management arms.
• ✳️ Digital risks, including cyber security and cloud outages, are gaining prominence, requiring insurers to develop specialized coverage and provide risk prevention strategies.

Questions & Answers

Q: How do insurers address the concept of commercial sustainability in their business models?

Insurers focus on incorporating ESG criteria into their business models by leveraging external data sources, such as weather forecasts, satellite imagery, and IoT devices, to improve risk assessment and pricing. They also aim to become partners to their customers, offering risk prevention and mitigation strategies through data-driven insights.

Q: How can insurance companies effectively prevent the protection gap and ensure more individuals and businesses are adequately insured?

Insurance companies are exploring innovative approaches, including parametric insurance, to reduce the protection gap. By using external data sources and predictive analytics, insurers can offer more accurate pricing, educate customers on risk prevention measures, and create products and services that cater to changing needs.

Q: Are insurers actively engaging with climate tech companies and leveraging their technologies?

While there is a significant overlap between climate tech companies and insurance technology startups, insurers are still in the early stages of fully engaging with climate tech companies. However, they recognize the potential impact of climate tech solutions, such as weather forecasting and risk prediction, in improving underwriting and risk management processes.

Q: How are insurers transforming their business models to address digital risks, such as cyber security and cloud outages?

Insurers are expanding their focus from insuring physical assets to hybrid and digital assets, including brand reputation and cybersecurity. By using data analytics and external digital sources, insurers can better assess and price risks associated with digital assets, enabling more proactive risk prevention measures and faster claim settlements.

Summary & Key Takeaways

• Sabine Van Der Linden, CEO and co-founder of Alchemy Crew, explains her extensive experience in insurance and the fintech industry, focusing on helping insurance companies adopt and implement new technologies.

• The discussion centers around the concept of commercial sustainability, which involves addressing environmental, social, and governance (ESG) criteria and incorporating them into insurance business models.

• The event at ITC 2022 emphasized the importance of data analysis, responsible underwriting, and disruptive business models in achieving commercial sustainability in the insurance industry.