Model Emerging Risks

Insurers face growing threats from emerging risks that are difficult to model using traditional historical data alone. LLMs can analyze diverse, unstructured data sources – scientific reports on climate change, cybersecurity threat intelligence feeds, legal journals discussing social inflation trends – to identify potential impacts and help actuaries and risk managers develop forward-looking scenario models. For example, analyzing climate model outputs and research papers to assess the long-term impact of rising sea levels on coastal property portfolios.