December 4, 2018 09:30
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The insurers have the alertness, agility and ability to innovate to ensure the intangible assets of the giant virtual, such as Facebook, Apple, Amazon, Google and Netflix ? This is the question asked by the reinsurer Swiss Re.
Go beyond the brick and mortar
Thomas Holzheu, chief economist for the region of the Americas, considers that it is essential that insurers do to evolve their business model. They must ensure that only ” brick and mortar “. They must recognize the importance of the assets related to the intellectual capital, research and development, as well as in the services sector, ” he said.
“These companies face different risks than in the manufacturing sector. Insurers need to adapt their offer of products in insurance companies “, adds Mr. Holzheu.
He adds that risks that were not insurable there is little the are now, thanks to advances in data processing, advanced analytics or modeling. “These advances have allowed us to create products that cover the procurement, cyber risks, product recall, weather risk, or changes in the prices of energy “, stresses the economist.
The economy has changed
To support his argument, Mr. Holzheu remember that the largest companies listed on the stock exchange are no longer the same as it did 40 years ago. “In the 1990s, firms in both manufacturing and energy were the largest companies listed on the stock exchange. In 2018, this are the technology companies that occupy the top of the pad. They rely on intangible assets “, he said.
Another example, in the automotive sector, companies with the highest market capitalization do not have cars. “However, Uber and Lyft take the place of players in the traditional transport market, both in terms of growth of capitalization “, said Mr. Holzheu.
Solutions that must evolve into the “key in hand”
The economist of Swiss Re sees one possible avenue for insurers : evolve insurance solutions. According to Mr. Holzheu, insurance products must aim at the protection of profits and cash flow (cash flow).
“The insurance solutions that are more innovative are intended to protect the specific needs of a client. These concepts will be able to adapt to the mass with the time. These solutions are pushing the limits of what is insurable, expanding the scope of insurance in risk management. “