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Leaders' Circle Warns Insurers to Prepare for 'Black Swans'
Well into the next decade, most insurers can predictably expect they'll still be grappling with regulatory compliance, financial transparency, and the challenges of globalization. But beyond these likely challenges, companies could also face what prognosticators call the "Black Swan," an unforeseen event that ultimately ushers in sweeping changes, such as the regulatory atmosphere that followed the collapse of Enron, or the recent global financial meltdown.
Executives, customers, and analysts throughout the insurance industry contemplated Black Swan scenarios during "Insurance 2015: Insurance Innovation and Preparing for the Black Swan," a special session at a new Oracle OpenWorld Leaders' Circle summit, the first such gathering devoted to insurance in the conference's history.
On the short list of possible Black Swan events impacting insurance is a major environmental disaster, which could rapidly accelerate the green movement and spur a new era of regulations that heighten eco-damage risks for businesses and individuals.
"Insurance technologists need to prepare for both the trends they can predict and the Black Swans they can't," says Chuck Johnston, vice president of strategy and alliances, Oracle Insurance Global Business Unit.
"Most insurance companies are moving in the right direction by embracing open systems and focusing more on business processes than on underlying technology," he adds. "They should also look to distribution transformation, product speed-to-market, and enterprise risk management to prepare them for a very uncertain future."
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