What are actually special insurance risks?

Special insurance risks are risks that, due to their complexity, unpredictability, or intensity, are not covered by conventional insurance policies or require specialized insurance solutions. These risks may also involve conditions or circumstances that are not considered, or only partially considered, in standard insurance policies. Here are some examples of special insurance risks:

1. natural disasters

• Earthquakes, tsunamis, and volcanic eruptions : In areas with increased geological activity, special policies must be taken out to cover these extreme natural events. These risks are often not included as standard in ordinary building insurance policies.
• Floods and storms : Here, too, special additional insurance or separate policies are often necessary, especially in flood-prone areas or mountains.

2. Cyber ​​risks

• Data loss, hacking, and cyberattacks : Businesses and individuals alike are increasingly confronted with the threat of cyberattacks, which can lead to data loss, theft of sensitive information, or massive business disruptions. Standard liability insurance typically does not cover these risks, making specialized cyber insurance essential.

3. Pandemics and epidemics

• Health risks from new pathogens : As the COVID-19 pandemic has shown, global health crises can have significant economic repercussions. Such events are often not covered by traditional health or business interruption insurance policies, which is why many companies are taking out special pandemic insurance policies to protect themselves.

4. War and terrorism risks

• War, terrorism, and political instability : Many traditional insurance policies exclude damages resulting from acts of war, terrorist attacks, or political unrest. In such cases, specialized war and terrorism insurance necessary, especially for companies operating internationally or in high-risk countries.

5. Environmental risks

• Environmental pollution and disasters : Damage caused by environmental pollution or the destruction of natural resources is often difficult to insure against, as insurance requirements vary greatly depending on the type of pollution, the region, and the sector affected. However, there are specialized environmental insurance policies that can protect companies from the financial consequences of such events.

6. Liability risks in the field of artificial intelligence (AI) and autonomous systems

• Autonomous vehicles, AI-controlled systems, and robots : The use of AI and robotics in various fields can lead to liability issues that have not yet been fully resolved. There is a need for specific liability insurance to cover potential damages resulting from faulty decisions made by autonomous systems.

7. Changing climatic conditions

• Long-term climate change : Businesses and households heavily reliant on specific weather conditions or agricultural production must protect themselves against the risks of drought, extreme temperatures, or irregular rainfall . Insurance policies covering such risks are often tailored to specific regions or sectors.

8. Political risks

• Expropriation, expropriation, and government intervention : Companies operating internationally or in high-risk regions must protect themselves against political instability . This includes risks such as expropriation , currency changes , nationalized industries , or altered legal frameworks .

9. Volatile markets and financial risks

• Extreme market fluctuations and financial crises : Companies and institutions heavily invested in volatile markets can be at risk from extreme price swings or sudden market crashes. Specially designed financial insurance policies to protect against risks arising from market or interest rate fluctuations.

10. Biotechnological and genetic risks

• Changes in genetic material : Advances in biotechnology create new risks, such as errors in genetic engineering , biotechnological disasters , or unforeseen long-term effects on ecosystems and people. Insurance policies that cover these specific risks are still relatively new and require specialized terms.

Conclusion:

The aforementioned special insurance risks concern areas where standard insurance policies are often insufficient or more specialized solutions are required. In such cases, tailored insurance policies are necessary, often designed to meet the individual needs and risks of a company or private individual.