International law firm DAC Beachcroft has today released over 160 predictions across the full spectrum of insurance risks. While ESG issues remain a dominant focus, this year's predictions indicate that technology/AI and regulation are where the industry should be focussing its attention in the year ahead.
Helen Faulkner, Global Head of Insurance at DAC Beachcroft, commented:
“Looking through the predictions, a thematic two horse race has emerged between regulation and technology/AI, with a rich seam of content where the two themes intersect.
"AI has already reshaped financial services. But in doing so, AI vulnerabilities have also been exposed. For example, if AI learns from incomplete or imperfect data, there is a significant risk of unintended discrimination or unconscious bias.
"Our increasing reliance on data has consequently brought ethical considerations to the fore and placed a greater responsibility on organisations to handle data responsibly and deal with the moral challenges arising out of its use.
"We expect to see more action and guidance from government and regulators on AI regulation and management, and increasing collaboration between the Information Commissioner's Office and other regulators including the Financial Conduct Authority. While recent developments have highlighted differences in approach to AI regulation across the globe, despite the challenges that this divergence raises, the opportunities on the horizon for the insurance industry are vast," she concluded.
Highlighting key opportunities and challenges that the global insurance industry could face in the year ahead, the predictions are accessed via the firm’s Informed Insurance thought leadership portal.
The predictions are grouped under six themes:
They are also broken down under 19 different lines of insurance business, as well as by region.
The full suite of predictions is available here.
