The CRO Forum's Emerging Risks Initiative 2022

Original Content: CRO Forum

The CRO Forum is pleased to present the 2022 update of their Emerging Risk Radar. Emerging Risks are risks which may newly develop or which already exist and are continuously evolving. They are characterized by a high degree of uncertainty in terms of impacts and likelihood and have a substantial potential impact on Insurance business lines, investment classes and/or operations. The Radar is a summary of emerging risks and associated major trends that could affect the insurance sector over the next five years and beyond. Risks are classified low, medium or high according to their perceived materiality. Both the list of risks and the assessment of impact and timing are based on the expert opinion of the Emerging Risk Initiative (ERI) working group of the CRO Forum.

The main trends have been assessed and updated as part of working group sessions. The Consumer Behavior Digitization is merged to Demographic and Social Change. The Urbanization and Social Change is merged into the Technological Developments & Impacts on Society.

Some new risks have been also added to the radar besides the thorough review of description of all risks in the radar:

• Climate Engineering (incl. Carbon Capture Storage): Climate engineering, also known as geo-engineering is the international large-scale intervention in the Earth’s climate system to counter climate change. Currently, those techniques can be divided into two categories: 1) Carbon dioxide removal techniques (CDR) and 2) Solar geoengineering or solar radiation management (SRM).
• Space Risk in Lower Earth Orbit: Lower Earth Orbit (LEO) is a critical space resource on which many aspects of our current way of life depends. Global communications systems - including satellite broadband coverage, Earth observation systems including satellite imagery and weather forecasting, and global positioning systems all rely on satellite infrastructure in LEO.