Changes in the way business is conducted will inevitably lead to improvements in risk management and insurance. In the last few decades, the main driver behind most of the changes has been technology, especially the internet, and insurers and risk managers have had to respond to the changing environment with new products and different methods.
The retail sector has been disrupted like any traditional business by the introduction of online sales. Many stores and brands must adapt to e-commerce or face extinction, while new entrants – large and small – take an additional share of existing markets and develop bags -o.
But as we reported in the story leading this annual issue of Business Insurance Looking at specialty and emerging risks, the product liability landscape for e-commerce is complex. With so many organizations from around the world involved in delivering goods to customers’ doorsteps, companies throughout the supply chain can be on the hook for claims, and those court has not yet reached a consensus on who is to blame when there are mistakes.
Technology is also changing the workplace. Even jobs that still rely heavily on physical exertion, like most of the construction industry, are being overhauled as a result of technological developments, including new tools aimed at improving safety. Their introduction, however, sometimes hits roadblocks as buyers look for proof that the sometimes high costs are justified.
But it’s not just high tech that’s bringing changes to the way we view and manage risks; politics also play a role. Whether it’s the added risks of navigating such a highly charged political environment or conflicting laws that leave questions about how to manage business in sectors like cannabis, the management of such that volatile risks remain a challenge.