The evolving risk landscape suggests that global insurance premiums could reach USD 10 trillion by 2030, with climate change predicted to result in a tenfold rise in economic losses over the next 30 years, according to a new report from Bain & Company.
The new report, Insurance 2030: As Risks Mount, Insurers Aim To Augment Protection with Prevention, highlights the opportunity carriers have to shift their focus from loss reimbursement to loss control.
In mature areas of the insurance market, such as personal auto and mortality, Bain & Company expects risks to decline, while exposures surrounding cybercrime and digital assets, climate change and infectious disease, are anticipated to increase.
This evolution, says Bain & Company, is forcing the sector to adopt a new role, moving from seeking reimbursements for damages to incentivise behaviours to lower overall risk.