This article conceptualizes risk culture and sheds light on the role it plays in insurers’ risk management frameworks. The article follows a cognitive, dynamic approach, arguing that risk culture is the product of organizational learning about what has or has not worked for it in the past. Within their local context, the members of a group learn which of the typically centrally prescribed formal risk management policies and procedures and which espoused risk philosophies actually work in practice in the sense of behavior that is formally or informally encouraged or discouraged, rewarded or punished. While the formal risk management framework defines which processes to use, which limits to obey, and which values to aspire to, it is the risk culture that defines which rules and norms are perceived to be rational and important. The insurance literature commonly argues, and practice suggests, that it is necessary to achieve consistency in order to effectively embed risk management. Nevertheless, inconsistent basic assumptions at the deepest level of risk culture are a likely feature of local subgroups. However, what is rational and efficient to one subgroup might be random and dangerous for the organization as a whole.

The emergence of smart technologies in homes comes with various services and functions for everyday life. While a smart home (SH) is associated with great potential in terms of comfort and risk treatment, it also introduces new and alters existing risks. Despite a growing number of academic studies on SH risks, research is fragmented with regard to its focus on certain disciplines and is still rather technology-focused. In this paper, we fill this gap by providing a comprehensive understanding of relevant risks through a systematic literature review. Following the guidelines of the PRISMA reporting protocol, we search 1196 academic and practitioners’ publications related to household risks or risk perceptions of SH users. A final set of 59 records results in three main themes. They include (1) a synthesis of pre-existing and emerging risks sketching the new risk landscape of SH households, (2) a discussion of the prevailing risk evaluation methods, and (3) a presentation of SH-related risk treatment options with a particular emphasis on insurance. We specify the influence of SH on risks and risk perception, and highlight the relevance of analyzing the interconnection of risks in complex systems, such as SH. Our review lays the basis for assessing SH risks and for enabling more comprehensive and effective risk management optimization.

Anthropogenic climate change is accelerating, and severe and widespread consequences are expected in many areas. Although the insurance sector is not closely associated with any of the sustainability dimensions, expectations may change rapidly. Against this background, we analyze the role of insurers, especially in the property and casualty areas, in addressing the environmental and climate risk challenges and developing a truly sustainable, environmentally friendly business model—green insurance. Building on the Principles of Sustainable Insurance set by the United Nations, we develop a comprehensive roadmap along the insurance value chain for executive management to design their company’s sustainability efforts, with special focus on property and casualty. The roadmap indicates actions to be taken as well as metrics to be managed in product development, marketing and sales, risk management and underwriting and operations and claims management towards green insurance. The existing products, risk appetite and operational processes must be reviewed to support sustainability goals and include the full portfolio of activities, including claims. The time to act is now, the sustainability journey is complex and the proposed business model transformation should provide benefits for early movers.

Over the last decade, digitisation and individualisation have fostered the development of on-demand services in many industries. In the insurance sector, technological progress brings new possibilities on how risks can be insured. This paper studies on-demand insurance and thereby takes three perspectives. First, we define on-demand insurance and study the current market landscape of offerings, leading to a characterisation of the phenomenon. Second, we analyse the on-demand insurance business model, discuss how value is created, and develop a taxonomy of the dimensions among business model components. Third, we describe the awareness and interest of potential customers in Switzerland using novel data recorded from a recent consumer survey. Using the results from the market study, business model analysis, and customer survey, we discuss the (future) role of on-demand insurance, shedding light on the ongoing business model transformation in the insurance industry. We conclude that insurtech companies address emerging customer needs and that traditional incumbent insurers must innovate to keep their prominent role at the customer interface. While novelty and complementarity of on-demand insurance solutions bring value today, we expect that efficiency and customer retention will add more value in the future, especially once technology has matured and business model components are well-aligned.

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