Emerging risk case study:

Our SONAR process enabled us to identify new forms of mobility as a potential source of emerging risks early on. It was the topic of the emerging risk case study in our 2013 Corporate Responsibility Report, which specifically examined the outlook for autonomous vehicles and self-driving technology. Eight years later, autonomous air taxis and cars are still at the prototype stage: Only slow-moving vehicles like postal delivery carts and shuttle buses are operated without drivers, and on a limited scale. The autonomy revolution is still waiting to happen.

However, numerous innovations have emerged in short-distance travel in recent years, and there are more to come in the near future. An important trend, which is having a profound effect on our cities, is the rise of small electric vehicles like the e-scooter. Large rental fleets of such vehicles are becoming parts of new, modular mobility ecosystems, whose usage can be orchestrated through smartphones and digital platforms.

Shared mobility, electrified and other forms of non-fossil-powered transport are all contributing positively to decarbonisation targets. Convenience and improved urban air quality are among the further benefits of mobility innovation, which re/insurers would want to support. To fully harvest these benefits, however, related emerging risks need to be carefully identified, assessed and managed.

New urban mobility comes with new patterns of traffic and related accidents. The digitalisation of services also creates cyber risks, and the interconnectedness of mobility services adds complexity, eg regarding service interruptions and resulting loss accumulation potentials. To help realise the full potential of innovations in urban mobility, re/insurers need to find ways to adequately pool and price such risks.