Autonomous machines are an increasingly present feature in business and in everyday life. With exponential advances expected over the next few years in artificial intelligence, robotics and data-supporting infrastructure, autonomous machines are set to become even more prevalent.
In this new publication, the Emerging Risk Initiative (ERI) of the CRO Forum aims to summarize the main issues currently faced by the (re)insurance industry as a result of advances in the use of autonomous machine technology. Presented in instructive, simple terms and illustrated with many practical examples, the paper discusses both (1) the delegation of decisions to machines and the resulting impact on the corporate landscape and processes, and (2) impacts on (re)insurance underwriting risks.
The full extent of the impact of autonomous machines on the (re)insurance industry is difficult to assess. Whilst some vulnerabilities are already apparent, it is clear that the opportunities offered by these new technologies are immense. However, with such a level of uncertainty and the potential for significant impacts, autonomous machines still represent a major emerging risk.
The CRO Forum is a group of professional risk managers from the (re)insurance industry that focuses on developing and promoting industry best practices in risk management. Made up of Chief Risk Officers from large multinational insurance and reinsurance companies, including SCOR, it aims to represent the members' views on key risk management topics, including emerging risks. Since 2016, SCOR has been the leader of the Emerging Risk Initiative work group.