Geopolitical Change
What does it mean to insurers?
Political instability, trade disputes, and diplomatic tensions dominate today's news.
Uncertainty leads to business interruptions, supply chain issues, and higher risk of defaults.
This means more claims from customers.
To stay profitable, insurers need to raise premiums and improve risk assessment with geopolitical data.
Technology, in such case, helps a lot.
Key Question 1. “How can insurers use tech to enhance their risk models?”
Takeaway: Start with the below use-cases, to incorporate geopolitical risks into risk assessment. Understand the “how”.
Tech use-case #1
Build a predictive model that considers geopolitical data (E.g. political instability, trade disputes, etc.) to predict. E.g. (a) Claim likelihood (b) Claim type (c) Claim severity.
Tech use-case #2
Integrate predictive output to underwriting process.
Tech use-case #3
Build powerful visualization to engage strategic decision.
Dive deeper into the “how” with our mini insights packs!
Each pack is a deep-dive how-to guide, featuring step-by-step instructions, execution Q&A, sample data, and dashboards to get you started right away. Click to explore!
#InsightsToActions
As tensions rise, insurers in conflict zones must be ready.
Key Question 2. “How should insurers in conflict zones plan for crisis?”
Takeaway: Set up a dedicated task force to monitor geopolitical risks, and form response strategy.
Responsibility #1
Monitor geopolitical trend and engage strategic decisions.
Responsibility #2
Create a crisis management strategy for major geopolitical emergencies.
Responsibility #3
Diversify risks by expanding into new markets and product offerings.
Instability can limit business growth and reduce demand for insurance. But it also brings new opportunities.
Key Question 3. “What are these opportunities?”
“How can insurers seize them?”