INSURANCE experts have called on the industry to be innovative and adaptive to the existing and emerging risks the sector faces to survive. Discussions at the 2024 Risk Management and Insurance Annual Forum, organised by the Insurance and Risk Management Information Centre on Friday last week, revealed that the industry faced a myriad of risks that need urgent attention.
Speaking during the conference, Firstlink Insurance Brokers managing director Edwin Chidawa said the risks were strategic, financial risks regarding artificial intelligence (AI) and climate change.
“I would say the strategic risks, but more so within our context, financial risks. I’m sure all of us can attest to the currency issue and exchange rate matters that are currently facing organisations operating in this particular environment. Those are some of the risks that we are facing as organisations and yet they are also looking at things like liquidity, the risk which comes from that volatility that we are facing,” he said.
“Then, obviously, the emerging risks. Everyone is now talking about climate change, but we may have to look at how that affects us specifically as different sectors.
“Then you are also looking at AI. It’s a tool to advance, but there are risks that will be embedded in that as well. So, the risks that are facing organisations, they are plenty, but can be categorised into those particular groupings.”
Chidawa added that while these risks were key, it was important to tackle financial risks as they were key to the longevity of the industry.
Champions Holdings group chief operating officer Lovemore Madavo said the risks organisations faced today also included cybersecurity.
“I think as organisations, where we are going, we should really look at this risk and look at ways of mitigating that risk, which may include insurance in terms of mitigation,” he said.
“The economic instability, we can’t run away from it. All the organisations we lead are exposed to that risk because some of the aspects of this risk are beyond us.
“We can’t control what happens. Then there is the regulatory risk as well. We are not sure what will come out of regulation as organisations. It’s a major risk we have to look at.
“Reputation, I think we hear about something about reputation damage. Perhaps I will add talent acquisition and retention risk as well. Being Zimbabweans, I think we are aware of this.”
He said in the absence of mitigatory measures, retaining talent would become a major risk.
“Technology changes how to maintain our supply chain and the internet is another risk. I will put those as the major risks we are facing in our organisations,” Madavo added.
The forum was held under the theme, Building Thriving, Resilient and Future-ready Organisations in a Dynamic Environment.