United StatesIn this paper, we summarise our sector experts’ analysis of the emerging issues, risks and opportunities that are affecting the Financials sector and related sub-industries in the transition to a more sustainable economy.
We explore three key themes driving sustainability-related opportunities and risks for the sector over the next one to two years:
- Artificial intelligence’s double-edged role in financial services, enabling efficiency and increasing uncertainty over viability of business models
- The rising severity and incidence of extreme weather events and the challenge of correctly pricing these risks to financial institutions
- Ongoing and accelerating efforts to deregulate the banking sector which are unlocking a broader range of investment opportunities
In turn, we then share our sector experts’ perspectives on how these opportunities and risks are evolving for three sub-industries, namely:
- Property and casualty insurers and reinsurers
- Diversified banks
- Financial exchanges and data