WHAT MAKES THESE RISKS WORTH HIGHLIGHTING OVER OTHERS ON SCOR’S EMERGING RISK RADAR? I.M. There are lots of interesting risks on SCOR’s Emerging Risk Radar and naturally I would like to cover all of them. But we have picked three examples to illustrate the broad range of types of risks, from the natural to the technological, from the differentbut-familiar to the completely unknown. The risks we’ve highlighted here present unique or particularly widespread challenges – and opportunities – and represent an interesting interconnection of trends. For example, climate engineering is not just a climate risk: it could also fan geopolitical tensions. Yet, at the same time, as a completely new field, it presents intriguing possibilities for impactful innovation that are supported by insurance. FIVE YEARS AFTER THE START OF THE COVID-19 PANDEMIC, WHY IS IT STILL RELEVANT TO DISCUSS EMERGING INFECTIOUS DISEASES AS AN EMERGING RISK? I.M. We’ll never be able to fully anticipate how EIDs spread or the impact they’ll have. The Covid-19 pandemic taught us a lot about the potential consequences of infectious diseases, but EIDs all behave differently and human behavior can have a huge impact on how they’re spread. EIDs are another example of a risk that should be considered through the lens of several different trends, such as hyperconnectivity, geopolitical risks, changing demographics, and deterioration of the environment. The recent H5N1 Bird Flu outbreak in the US proves that these incidents are, unfortunately, not a rare occurrence. WHAT ROLE DOES INTERNATIONAL COLLABORATION PLAY IN ADDRESSING THE CHALLENGES POSED BY EMERGING RISKS? I.M. International collaboration is crucial in addressing the multifaceted challenges posed by emerging risks. For example, global epidemiological surveillance and outbreak modeling rely on data sharing and cooperation between countries to detect and respond to emerging infectious diseases. Similarly, managing space risks requires international agreements and regulations to ensure the safe and sustainable use of space. Collaborative efforts can also help in developing standardized approaches to climate engineering and mitigating its potential impacts. Weakening international collaboration is a trend that will have a negative impact on almost all of our emerging risks. or meteorites, which increase with each new object. Current regulations are inadequate for managing thousands of additional satellites, which are not required to be maneuverable or properly decommissioned. Cyber attacks on satellite constellations and geopolitical tensions also pose significant risks, even though the former are not currently covered under cyber policies. Environmental impacts from increased rocket launches and space debris falling to Earth are also concerns, but the major emerging aspect is linked to the interconnectedness of our modern world and the significant impact that an outage of GPS, financial payment systems, military intelligence or other space-dependent services could have. Opportunities for SCOR include developing insurance products for new space-related risks and products. . I.M. CONTRIBUTOR INTERVIEW IRENE MERK Senior Actuary and Emerging Risk Ambassador TRANSFORMING TOMORROW WITH OUR VISION 45
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