Predictive approach a must for emerging cyber risks: Mando CEO
The risk transfer industry must shift from using a historical, rear-view mirror perspective of risk to one that is future-focused and predictive if it is to successfully underwrite emerging risks, particularly systemic risks and cyber.
That is the view of Veysel Geylani, chief executive officer and founder of Mando, speaking in June at an interview with Intelligent Insurer at its Re/insurance Outlook Europe 2023 conference in Zurich. The full interview with Geylani can be viewed here.
“The industry would be well advised to use a data-driven approach that leverages granular data.” Veysel Geylani, MandoGeylani expressed concern about the insurance industry’s reliance on historical data when assessing risks. He likened this approach to driving a car while only looking through the rearview mirror, leaving little room to foresee and mitigate future systemic risks. He stressed the urgency for the industry to adopt advanced technologies such as artificial intelligence (AI) and other cutting-edge tools to attain predictive insights.
To effectively manage complex risks, he said, rather than relying solely on vast portfolios, the industry would be well advised to use a data-driven approach that leverages granular data. This allows insurers to break down risks into traceable components, similar to building with Lego bricks. By simplifying insurance products and coverage, while ensuring transparency and traceability, the industry could harness better risk assessment and decision-making.
