Page 11 - RMAI Bulletin July 2024

RMAI BULLETIN JULY 2024

Top Emerging Risks

and Possible Ways to

Mitigate

For Insurance company

Tarun Kumar

Emerging risks become more intercon- unpredictable the ERM leaders can identify and rise to
nected and unpredictable the ERM leaders the level of full risk mitigation.
can identify and rise to the level of full risk Just in beginning of 2020, when top business leaders
mitigation were asked to identify the biggest risks of the coming

decade, climate change was high on the list. But as we
Overview are standing today in corona virus pandemic, concerns

Background about sustainability and the green transition have
fallen down to bottom of the agenda.
Today's business environment is rapidly changing
which is characterized by advancing technology, shift- Various Risks in Insurance Industries
ing geopolitical tensions and increasing regulatory
scrutiny. Unlike FMCG goods, insurance isn't a daily purchase
commodity. As it is a one-time finance related pur-
It is more important than ever for organizations to look chase, it is important that we properly understand the
beyond near-term threats to prepare for the risks they risk associated In order to address these risks, the in-
could face in the future, as these emerging risks are surance industry itself will need to innovate and imple-
new or developing threats that have an unknown sig- ment those technologies which have help them at least
nificance and impact and are therefore not well under- mitigate if not eliminate future uncertainties.
stood.
1. Insurance Fraud

Introduction The Risk:
As emerging risks become more interconnected and The insurance services industry is at risk from height-

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