Insurance evolution: ‘tangible steps’ on risk prevention ramping up
“There is quite an evolution of the role of insurance—conceptually, we’ve always known we want to be more preventive, in our function, but now you see tangible steps towards that ambition.”
This was the view of Nina Arquint, chief executive officer EMEA at Swiss Re Corporate Solutions (CS), as she discussed how insurance is adapting to the changing risk landscape. Her comments came as she discussed the theme of the recent Airmic conference titled “Riding the waves of future risks and opportunities”, in June, in an interview with Intelligent Insurer.
Arquint said that while dynamic risk is not a new thing, she has noticed a shift in the way the industry is talking about it, which she witnessed first-hand at Airmic.
“What may have started with more generic conversations two to three years ago, is becoming much more tangible, specific, and concrete. There is a much better understanding of our customers’ needs.
“On the insurance side, there is quite an evolution of the role of insurance. Conceptually, we’ve always known we want to be more preventive in our function. But I believe you now see movement—tangible steps—towards that ambition.”
For Arquint, climate risk, inflationary impacts, and the evolution of insurance represented the top three risk topics at the event. Outlining her key takeaways, she said it was clear that for risk managers on the corporate side, this evolution has involved their becoming risk leaders.
“We see the risk manager stepping up in that field, understanding the more strategic importance of the role. They clearly have a purpose to play but they need support to do that, and that goes beyond the risk transfer.”
Arquint added that a lot of the conversations she had during Airmic were “not about traditional risk transfer”.
“They were more about the needs the corporates have, which cannot be covered with traditional risk transfer and products we have in place—that was the exciting piece,” she explained.
For Swiss Re CS, the value chain client is obviously important. Arquint confirmed that the market environment is challenging but said she remained “positive” because of Swiss Re’s robust position.
“If I look at where we come from, who we are, what we have been able to develop as part of the Swiss Re DNA, and the assets we have, that’s what makes me positive because I see tangible experience, and very tangible examples now, having been built up over the last few years, in terms of how we can support clients exactly with those needs that go beyond the traditional products,” she said.
For example, she recalled, just three years ago the topic of sustainability was not a very specific, concrete conversation with risk managers. “Sustainability was maybe more a corporate topic than a risk topic. I would say that has changed significantly, at least when it comes to the subject of climate change, into net zero transition.
“The more it has come into the insurance work, the more it has changed significantly.”
Facing the pain points
Arquint highlighted the insurance support area of risk and data services (RDS) as another that has experienced progression.
“This is about very specifically helping to address the pain points our customers have. Staying with the example of sustainability, the first pain point that risk managers usually face is that they have the data spread across different systems in their companies. You need to have one place where you can access all the data you need to be able to pull it all together,” she explained.
