Chief risk officers are increasingly important for general insurance companies as the segment faces current and emerging risks.

This is amongst the findings of research conducted by consulting firm LCP in collaboration
with over 50 CROs across the segment.

The automation of routine work was considered by 60% to be an important area of development, particularly for routine risk management tasks, according to the group. Developing AI-supported “risk management engines” would allow risk teams to dive deeper into a broader range of risks whilst also freeing up more time to spend on business partnering.

LCP’s report sets out a blueprint for the risk function of the future, which fuses human judgement and relationship-building with technology and AI to help the firm actively manage the balance between risk acceptance and risk mitigation.

Ed Harrison, principal at LCP, commented: “Insurers face a dramatic shift in the risk landscape, driven by megatrends in AI, climate change, geopolitics and culture. At the same time, risks are becoming increasingly interconnected.

“Risk teams must evolve, too. The risk function of the future will fuse data-driven insight and human judgement seamlessly to help the business balance risk acceptance and risk mitigation as the ground rules keep changing.

“Central to the risk function of the future will be the ‘strategic CRO’ who connects risk and strategy at the highest level within the business, and a risk management ‘engine’ that delivers better risk intelligence than ever before.”


Other report findings (Source: LCP)


-CROs’ top risks today are cyber risk and AI, climate change and ESG, geopolitical risk and economic uncertainty.

-Over half of report participants said that cyber risk will be the top risk in ten years, while 45% said climate change and AI will be the key risks.

-Climate risk management ranked as the top skill that CROs would most like to develop in their teams by 2030.

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