Source: Youm7
The Egyptian Insurance Federation has recommended adopting AI-powered automated underwriting to address the nature of interconnected risks, where traditional risks overlap with modern challenges such as geopolitical changes, natural disasters, advanced technologies, and cyberattacks.
In its weekly bulletin, the Federation noted that in light of recent global events—including open geopolitical conflicts, cross-border cyberattacks, supply chain disruptions, and accelerating climate impacts—it has recognized the importance of rethinking risk concepts and management approaches.
Accordingly, the Federation emphasized the need to discuss the concept of emerging and interconnected risks, which combine traditional risks with modern challenges. It has consistently explored effective mechanisms to deal with these risks through several steps:
Since launching weekly bulletins in 2017, the Federation has dedicated multiple issues to emerging risks, aiming to raise awareness in the Egyptian market about their nature and effective management.
Each year, the Federation presents a summary of the Global Risks Report issued after the World Economic Forum, enabling insurance professionals and stakeholders to track changes in existing risks and identify new or emerging ones.
Since organizing the annual Sharm El-Sheikh Insurance & Reinsurance Forum in 2018, the Federation has devoted sessions to emerging and interconnected risks. At the 7th Forum in 2025, one session was titled “Interconnected Emerging Risks: The Role of Insurance in Building Resilience Against Climate, Geopolitical, and Economic Risks.” Key points included:
The modern world faces complex, interconnected macro and systemic risks.
Global shipping lanes are increasingly disrupted by regional tensions, wars, piracy, and sabotage, leading to higher shipping costs, longer routes, and supply chain breakdowns.
Insurance plays a vital role by offering war and terrorism coverage, raising awareness of risks, and making certain risks insurable through mitigation measures.
The sector operates in a volatile economic environment marked by sanctions, tariffs, and uninsured activities, affecting trade stability. Insurance helps businesses adapt by deepening understanding of regulatory and market contexts, ensuring safer and more efficient global trade.
Marine insurance is not just about covering losses—it is a strategic partner in strengthening resilience, forecasting risks, and guiding stakeholders toward safer decisions.
To address interconnected risks, the Federation recommends adopting a structured approach that includes:
AI-driven automated underwriting
Cross-border infrastructure development
Directing risk capital toward sustainability
The ultimate goal is to shift from reactive responses to proactive prediction, mitigation, and prevention.
