Tracking Emerging Risks in Property and Casualty Insurance

This technical report outlines the evolution of emerging risks in the property and casualty insurance sector over the past 20 years. It begins by defining emerging risks as new or developing trends that can potentially cause injury or damage, often difficult to quantify with traditional data. The report details the challenges of identifying and evaluating these risks, as well as leveraging insights for competitive advantage. It highlights how the Emerging Issues team at Verisk has contributed to the development of ISO Forms coverage products in response to a changing risk landscape. The report presents various emerging risks tracked over the years, including identity fraud, e-cigarettes, and PFAS, detailing their potential impacts and the evolving regulatory environment. Additionally, it discusses the implications of societal changes, such as the cannabis economy, on emerging risks, emphasizing the need for insurers to adapt their products and practices accordingly.