Challenges Confronting Insurance

Abstract

This chapter is devoted to foreseeable future developments that will pose challenges to the insurance systems of industrial countries. These challenges will call for adjustments by both private insurance (PI) and social insurance (SI), likely also affecting their division of labor. As a matter of principle, the need for adjustment will confront both PI and SI. The reason is that the changes in the economic environment discussed below result in modifications of risk behavior on the part of insurance buyers (IB).