Insurers and stakeholders have been urged to step up co-operation in risk management, to get a better handle on the challenges posed by rapid technological advances.

“Collaboration is the paradigm for managing risk in the 21st century,” a global network of chief risk officers known as the CRO Forum says in a position paper.

“Because most losses stem from lapses in the planning or inception phase, teamwork must start early.”

Shrinking safety margins mean less reaction time to avert disasters, according to the paper, called Pushing the Limits – Managing Risk in a Faster, Taller, Bigger World.

Coping with the environmental impacts of climate change must also form part of the new equation. The effects are already being felt, with shifting coastlines, changing rainfall patterns and disruptions to the ecosystem.

“This creates a double challenge, since not only the technological, but also the natural goalposts are moving,” the paper says.

“The new safeguards we need must address not only the areas we actively change… they must also deal with challenges that are not within our direct control.”

The insurance industry has the experience to play a major contributing role, the CRO Forum says.

“Insurance is in its core about risk management, and our expertise in root-cause analysis to avoid or mitigate the extent of incidents.

“It has already contributed know-how in the past by developing guidelines jointly with other industries.”

Members of the CRO Forum include Allianz, Swiss Re, Munich Re, Prudential, Hannover Re, Zurich and Aviva.