How Far Can Insurance Go? Seeking Solutions in the Age of AI and Climate Risk

Korea Insurance Research Institute Hosts International Seminar
"Changing Nature of Risk... A Critical Turning Point for the Global Insurance Industry"

The Korea Insurance Research Institute announced on the 29th that it co-hosted the '2026 International Workshop on Risk and Insurance' international seminar with Pohang University of Science and Technology, the University of Illinois in the United States, and Simon Fraser University in Canada.

On the 29th, Heonsu Kim, President of the Korea Insurance Research Institute, delivered the welcoming speech at the "2026 International Workshop on Risk and Insurance," an international seminar co-hosted by Pohang University of Science and Technology, the University of Illinois, and Simon Fraser University of Canada. Photo by Seunghyung Lee

This international seminar was organized to facilitate in-depth discussions on major issues facing the insurance industry, including the AI revolution and cyber risk, climate change and extreme weather, insurance data science, and market innovation.

Kim Heonsu, President of the Korea Insurance Research Institute, who delivered the congratulatory address at the seminar, said, "With AI and climate change transforming the very nature of risk, the global insurance industry stands at a critical turning point. I hope today's discussions on AI and data-driven market innovation will serve as an opportunity to broaden the boundaries of insurance amid these changes."

Professor Jung Kwangmin of Pohang University of Science and Technology emphasized, "As new risks such as AI and climate change are rapidly becoming systemic, it is time to revisit the question of what and how much insurance can cover. The answer lies in international cooperation across academia, industry, and policy."

The event consisted of three sessions in total. In the first session, which focused on the AI revolution and cyber risk, Professor Luo Jia of Peking University noted, "The scope of AI utilization by insurers is expanding to areas such as customer consultation and claims processing. The role of insurers is evolving beyond simply assuming risk to that of a 'service provider' supporting customer experience." He added, "Companies are increasingly recognizing the need to prepare for potential losses and liabilities arising from the use of AI. As a result, demand for insurance products and services that cover AI-related risks is likely to grow."

Next, Professor Arthur Charpentier of the Université du Québec à Montréal explained that the advancement of data, predictive modeling, and AI technology is further segmenting risk classification, pricing, and underwriting in insurance. He particularly pointed out that as insurance becomes more personalized, the traditional principle of mutual aid may weaken, and suggested that the emergence of AI risks necessitates a discussion of new boundaries for insurability.

Professor Maochao Xu of Illinois State University addressed the current state of cyber risk pricing and highlighted that existing approaches—such as exposure-based underwriting and scenario-based risk assessment—have limitations in fully reflecting rapidly evolving cyber threats and systemic risks. He explained that AI-based security analytics and real-time monitoring could play a key role in advancing cyber insurance models in the future.

In the following sessions, Professor Zhihe Tang of the University of New South Wales, Professor Jose Garrido of Concordia University, and Professor Feng Xi of the University of Wisconsin-Madison gave presentations on climate change and extreme weather phenomena. Subsequently, Professor Sheldon Lin of the University of Toronto, Professor Feng Luenhuan of Tsinghua University, and Professor Tim Boonen of the University of Hong Kong discussed topics related to insurance data science and market innovation, including telematics-based driving risk assessment, decentralized (DeFi) insurance, and weather index insurance pricing.

A representative from the Korea Insurance Research Institute stated, "Through this event, we were able to share an understanding of the new risk environment facing the insurance industry and reaffirm the importance of international cooperation in responding to these challenges."

This content was produced with the assistance of AI translation services.