In Swiss Re’s ‘the perfect remedy for the risks posed by digitalisation’ report, Group Chief Digital & Technology Officer, Pravina Ladva, and Antonio Grasso, digital entrepreneur, author, and founder & CEO, discuss how digital solutions can mitigate the risks of digitalisation.
Grasso observes that while digitalisation has brought many benefits, it has also increased risks in the areas of privacy, data, and infrastructure.
He writes, “Entire economies are suffering from ransomware, which encrypts data in an effort to hold individuals, businesses, and organisations hostage to a price tag.
“In turn, companies are saddled with reduced productivity following computer blocks that limit their system’s capacities to respond.”
As digitalisation changes risks, solutions must keep pace to address emerging risks that could become systemic, suggests the report.
Ladva notes, “As a growing share of the digital economy now relies on the cloud, cyber resilience is becoming increasingly important. Interconnectedness, driven by the forces of globalisation and digitalisation, is creating new risk factors. Risk models and insurance solutions need to be adapted to this new reality.”
Ladva also observes that the need for new types of insurance products that protect valuable digital assets is imperative as the risk landscape expands.
She cites the partnership between cyber insurer Cowbell and Swiss Re, with the development of a program that offers protection for enterprises that build their footprint in the Amazon Web Services (AWS) Cloud. Ladva writes, “In addition to robust cyber insurance protection, this programme provides continuous guidance to policyholders, helping them deploy cyber security best practices in a cloud environment.”
As interdependencies and unexpected risks arise from further digitalisation, Lavda suggests that re/insurers must respond to these challenges and changing customer needs by leveraging granular, real-time data.
She adds that the use of better analytics to create accurate predictive models and the automation of processes allows the industry to make timely and precise risk judgements.
“At Swiss Re, we support our clients in their data-driven transformation by delivering risk insights through pricing and claims analytics,” she says.
“For instance, we’ve created one of the largest risk and insurance data pools worldwide for property & casualty insurance with our plug-and-play Impact+ platform that yields actionable insights from embedded Machine Intelligence models and processes.”
Ladva concludes by highlighting the importance of speeding up the response to risk by optimising the advantage of our expanding digital capabilities. She writes, “Let’s not be intimidated by the risks presented by digitalisation, and instead use the power of digitalisation to address them.”