Insurance is a concept as old as humanity itself, but one that continues to play a crucial role in the contemporary world.
It is first and foremost a social act, where collective contributions to a ‘common pot’ can be made in order to compensate, as far as possible, individuals affected by losses, be they small or large victims. It reflects the notions of collective security, solidarity and risk-sharing, yet cannot be understood without considering humanity’s most material and deepest concerns.
The origins of insurance are intertwined with the principle of solidarity amongst merchants, farmers and stockbreeders, and then amongst sailors and bankers, before taking its modern form following the Great Fire of London in 1666.
This edition of Accuracy Talks Straight examines the current challenges facing the insurance sector, some of them considerable.
Given the key tenet of insurance is anticipating risk, the profession is confronted with two major developments. First, societal changes have seen a shift in the way we perceive an acceptable level of risk, balancing the relentless pursuit of security with financial pragmatism. Second, external pressures abound as wider uncertainties and the proliferation of risk are pushing society to invent (or reinvent) and embrace alternative and complementary insurance mechanisms.
Such developments raise questions around the role of insurers in society, and more generally around our capacity to take risks in a world undergoing technological, climatic and social upheaval. In this context, humans will have to be bold enough to innovate and create in order to cope, whilst, paradoxically, operating in an environment that discourages excessive risk-taking and urges precaution.
Delphine Sztermer – Partner, Accuracy
Accuracy Talks Straight #11 – One Partner, One View (Editorial)