Crystalizing risks, as defined in Guy Carpenter's 2014's emerging risk report, are highly interrelated with the technology risks discussed in this year's report. When we refer to crystalizing reserving methodologies that preserve a sustainable and level playing-field for responsible competition. The technology risks should provide a competitive advantage to those ahead of the curve in their identification, modeling and mitigation. In addition, regulators also have the responsibility to ensure that improvements in the data and modeling of emerging risks are not underestimated or overlooked, resulting in long term industry instability. All of these dynamics are combining to force the (re)insurance industry to bring these standardized processes to the casualty marketplace. In our report, we examine four key areas where risks continue to emerge or, perhaps more importantly, contain elements where the risks are unknown at this time:
- Cyber
- Life, health and longevity
- New technologies
- Casualty catastrophe reserving