the new age: nat cat insurance in times of perturbation · 10/9/2018 · smart home pay -as you...

The new Age: Nat Cat Insurance in Times of Perturbation

ICAR Forum| 9 October 2018Dr. Angelika Werner – Swiss Re

Swiss Re | ICAR Forum | 9 October 2018 2

„We can't solve problems by using the same kind of thinking we used when we created them.“ Albert Einstein

Swiss Re | ICAR Forum | 9 October 2018


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3Swiss Re 2018 | WTW Risk Summit 05. Juni 2018 3

THE NEW AGE

01our world tomorrow



Unexpected Events

Macro Trends

New Risks

Economy

Technology

Sociopolitical Landscape

Climate and Ecology

• Prepare for future risks

• Identify chances

• “There is no silver bullet that will work in all cases”

Changing Risk Landscape

4Swiss Re | ICAR Forum | 9 October 2018


Macro Trends

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Smart Cities

Optimal use of resource and infrastructure

Digital Life

Whole life digitally organised via broking platforms

Longevity

Increasing pressure on insurance- and pension schemes

Ecological Collapse

Overpopulation, climate change, pollution and waste of natural resources

Protectionism

Overpopulation, migration and globalisation





THE NEW AGE

02is the changing climate agap closing factor?



Source: WMO

7Swiss Re | ICAR Forum | 9 October 2018


Climate Change in Eastern Europe

Gradual temperature increase

Increased drought and brush fire risk

No clear trend in precipitation amounts or extreme rain events

Nonetheless: A number of events with extreme rainfall amounts in short time. Maybe more heavy precipitation events…?

8Source: DWD

Is changing climate a real disrupter for insurance?BUT


• CEE insurance penetration ~2.5% (EU average 7.4%)

• Relevant markets : PL ~40%, CZ, HU, RO, SL

• Per capita insurance spent 10x lower than EU average

• Current premiums EUR 31.3bn (37% life, 33% motor, 10% property)

• Wage generally low, so no sufficient resource to buy insurance

– Insure communities for regional covers?

– Micro insurance?

• Low financial education, risk awareness and trust in financial industry

– There are consumers who could afford insurance, but decide not to!

– How to design inclusive insurance products?

– What role plays technology?

The protection Gap in Eastern Europe

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THE NEW AGE

03future digital digital digital…



The consumer is changing…

60-80% of the private consumers use digital channels

Differing data security perception

- Pre-Generation Y

- Digital Natives

Use of Shared Economy

“Blind Trust” in digital systems

Flexible change of services and jobs

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Society: The new age

Gamification Shared Economy Gig Economy

Game-based techniques and way of thinking

Interest-groups

System of credits and penals

Life optimisation and customer tie

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“Sharing Economy”services

Transport, delivery or living

Situate Use

Status symbols don’t play a role anymore

Income switch from one to multiple jobs

Freelancing

Portfolio of employers

Increased flexibility, but social insecurity


The digital age affects our product landscape

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“Big Data” and “Smart Analytics”

Individual risk profiles

Tailor-made products and premiums

Fewer standard products

New risks: data regulation and reputation

Pressure on solidarity principle of insurance


Storage/ calculation engines

Independent of user and data location

Calculation of complex processes much faster

Technical difficulties and Cyber risk

Accounting technologie

Digital certificate of contracts

Transactions confirmed, connected and settled

System link, automation and reduction of documentation

Digital Changers:

Cloud Services Blockchain Internet of Things

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internet-based home appliances

Increased numbers of connctions

unclear security standards

IoT appliances susceptible for cyber crime





THE NEW AGE

04how do we change theproduct landscape?



21 3 4

Design Thinking

Consumer-centered product development

Plug-In IT Platforms

Behavioral Economics

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Data Analytics

How can we face these challenges on the product landscape?

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New Technologies:e.g., Cyber, SmartHome

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How exposed are you?

High resolution modelling, e.g. fluid dynamicprocesses

In Europe, riverine flood risk on 5m resolution

Global riverine flood risk on 30m

Also other persils analysed like brush fire, storm, hail, earthquake

GIS-systems allow exact risk assignment

Easy access via CatNet systemhttp://www.swissre.com/clients/client_tools/about_catnet.html

http://www.swissre.com/clients/client_tools/about_catnet.html


Understand the

CONSUMER

Risk Information/ Education

Simplification

Increase Trust Easy Sales Process

Flexible Products

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The consumer is the centre…


I have a DreamTrust

Modular Dynamic Products

Travel DelaySmart Home

pay-as-you-dwell

Motor Telematicspay-as-you-drive

SocialMedia

Internet of Things (IoT)

Biometric SensorsWearables

my Health Cloud

Consumer Insurer Consortium Sensitive dataProduct Module

B2B Risk Solutions

The Vision : All the Cover I Need in 10 Minutes a YearYour Individual Jigsaw of Modular Products Tailored to You on Your Data


New ways to embrace the coming challenges!

Contact: [email protected]


Legal notice

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©2017 Swiss Re. All rights reserved. You are not permitted to create any modifications or derivative works of this presentation or to use it for commercial or other public purposes without the prior written permission of Swiss Re.

The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.

the new age: nat cat insurance in times of perturbation · 10/9/2018 · smart home pay -as you...

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