As the industry looks ahead to the next 20 years, the need for insurers to embrace digitalization and technological change is impossible to ignore, argues the CEO of ACORD Solutions Group.

The 2023 Allianz Risk Barometer gives insight into the risks organizations are facing in the year ahead and what action companies are taking as they face increased levels of disruption as a result of various factors including digitalization, the war in Ukraine and inflation.

Central banks have hiked their base rates in response to inflation. For insurers, both sides of their balance sheet have been left exposed to risks, impacting profitability as the cost of claims increase and the value of investments fall. While geopolitical tensions and inflationary pressures continue to pose a threat to the global economic landscape, how can insurers mitigate the risk of inflation-driven exposures?

Insurers should brace themselves for much more volatility in the investment markets for the foreseeable future and will likely need creative solutions to improve their returns.

The hard insurance market appears to be softening, with Airmic’s latest pulse survey identifying signs of ‘green shoots’ as the pace of rate increases slows

While other property/casualty lines may be challenged in a recession, some specialist accident & health products can see a lift in business during an economic downturn, said Jay Hamilton, global head of accident & health, AXIS.