Rapid technological changes, digitalization in particular, have already transformed the characteristics of risks assumed by the (re)insurance market. COVID-19 will only accelerate these trends. Cyber is a working example of how the risk transfer sector is capable of responding to transformative developments, and it provides a glimpse into the growth potential on offer as new risk pools emerge.
The extraordinary pace of digitalization forced by the pandemic has also created the necessity and will for governments to accelerate progress around technology governance to deal with the many exacerbated risks such as cyber-attacks and misinformation. In multiple jurisdictions, including both sides of the Atlantic, the response to tech concentration may be a sign that the tech regulatory landscape will continue to solidify in the coming years, indicating an increasing acceptance of a governmental role (and responsibility) in providing clear guidance to businesses while ensuring a leveled playing field.
These insights are discussed in more detail in the 2021 Global Risks Report, published by the World Economic Forum with support from Marsh & McLennan. `