VIRTUAL DISCUSSION Emerging Risks: The Future of Mobility When we talk about emerging risks, we often think about technology-led risks such as cybercrime or bio-warfare. These digital and biological risks often start from another point within the value chain. Connected, electric and autonomous driving has become part of the daily Manjit Rana conversation and one which cannot be avoided. Head of Insurance psKINETIC Spotlight on Disruption Virtually every industry is being disrupted. Typically, disruption comes from the outside – see the examples of Tesla, Amazon, Netflix, and Starling Bank. All these were outsiders to the industries they ended up changing forever. 1. Disruption Covid has been a shock, accelerating pre-existing disruptive trends. Offline retailers collapsed like dominoes. Airlines are struggling to survive. Car sales dropped 90%. Simultaneously, Amazon created an additional 250,000 jobs in Q3 2020, and Zoom revenues rocketed by 370% in Q4 2020. The insurance industry has always claimed it’s too specialist to be vulnerable, but is that true? Covid exposed our vulnerabilities, too – particularly regarding customer servicing and claims fulfilment. Consumer behavior has evolved – again accelerated by Covid. Digital adoption has increased. Mobility patterns, shopping behavior – even interpersonal behavior – have changed. There seems to be more of a community focus now compared with pre-Covid. The ways we educate and learn, exercise, consume entertainment, work, and travel are all evolving. 2. The Impact The impact on the insurance sector has been dramatic. The number of claims has dropped in retail insurance. Business interruption has become a thorny issue. Cybersecurity incidents have increased, with virtually every insurer now trying to put together stronger cyber propositions. Insurance is being disrupted. Virtually every insurer is now considering on- demand, parametric, embedded insurance – wanting to move away from traditional insurance models to new types of insurance and revenue models. But the crucial thing about shocks and disruption is that they also create opportunity. 32