Speaking at the reinsurer’s Nordic Risk & Insurance summit in Helsinki today Mr Singh said the growing threats faced by governments not only in Scandinavia but across the world meant the time was right for the appointment of a senior figure to tackle risk management seriously.

 “Our risk landscape is constantly evolving, and risks are highly inter-connected,” he said. “As the financial crisis has shown, the risks we face can change suddenly and unpredictably. But while economic risks are high on the radar in 2009, we must not ignore the long-term horizon.”

“In the years ahead, climate change is one of the major risks to be confronted by the insurance industry, companies, governments and the general public. It’s well known and accepted that due to global warming, an increase in natural catastrophes like storms, floods and droughts, both in frequency and severity, has to be expected. But there are other impacts such as effects on public health, and consequences such as food security and possible human conflict,”

Mr Singh said the reinsurer had therefore recommendedthat governments create a ‘Country Risk Officer’ function, similar to the private sector’s Chief Risk Officer.

The role of this person, group or network would be to co-ordinate the risk assessment and mitigation activities for all hazards, and be the focal point to communicate throughout government – and to the public – on how to address the risks on the table, he added.

“The Country Risk Officer model has many benefits,” Mr Singh explained. “As well as providing better know-how about key risks in the minds of policymakers and the general public, a greater degree of co-ordination in the way hazards are addressed enables them to be managed more cost effectively. The

Country Risk Officer can also interface as needed with the private sector, not only to exchange knowledge about risks, but in taking steps to transfer risk to the insurance industry and capital markets on a commercial footing.

“In Swiss Re’s view, greater public awareness of risk, along with improved co-ordination in the way governments respond to the risks presented by natural catastrophes, will help to close the vast gap between economic and insured losses.”