A storm is gathering on the horizon of the global insurance industry, one characterized by risks so immense and unpredictable that they threaten to become uninsurable. In response to this escalating crisis, the Federation of European Risk Management Associations (FERMA) has launched a forward-thinking initiative: the Next Gen Risk Council. This strategic body, composed of young, promising professionals, is tasked not merely with managing present-day threats but with envisioning and shaping a more resilient future. This article explores the critical context behind the council’s formation, from the market-wide anxieties over uninsurable exposures to the systemic regulatory hurdles complicating coverage. It will analyze how empowering the next generation of risk leaders may be the industry’s most crucial strategy for navigating the path away from an uninsurable world.
From Growing Concern to Tangible Threat: The Data Behind the Crisis
The urgency driving FERMA’s new initiative is not based on speculation but on stark, quantifiable evidence of a market under severe strain. The concept of an “uninsurable future” has rapidly shifted from a distant theoretical risk to a present-day reality for many organizations. FERMA’s 2024 Global Risk Managers Survey, conducted with PwC, serves as a critical barometer of this change. A staggering 53% of risk managers now believe that key business activities and locations could become uninsurable, a significant leap from 41% just two years prior. This fear is translating into action, with 54% of businesses already altering their insurance buying strategies in response to coverage constraints. The primary drivers of this trend are the very forces defining our modern erclimate-related physical risks and natural catastrophes (cited by 73%), cyberattacks (55%), and complex supply chain disruptions (34%). These figures underscore a fundamental shift where traditional risk transfer mechanisms are failing to keep pace with the scale and volatility of emerging threats.
Navigating a Complex Risk Landscape: Structure, Strategy, and Systemic Hurdles
Structuring the Future: The Council’s Mission and Mandate
The Next Gen Risk Council represents a structured investment in future-proofing the risk management profession. Comprising up to 15 professionals under the age of 35, the council draws talent from FERMA’s 23 member associations across Europe. Its central mission, under the theme “NextGen Future Thinking and Foresight,” is to conduct an in-depth study titled “Foresight in Risk Management,” with its findings set to be unveiled at the 2026 FERMA Forum in Rotterdam. The selection process is designed to cultivate a diverse and meritocratic group, ensuring a rich blend of sectoral and geographical perspectives. As articulated by FERMA’s leadership, the initiative aims to give younger members deeper insight into their profession and create a collaborative platform for nurturing the next generation of industry leaders. This is not just a focus group; it is a dedicated engine for generating the innovative thinking required to address tomorrow’s challenges.
The Public Procurement Problem: When Regulation Hinders Resilience
While market forces like climate change and cyber threats present formidable challenges, they are compounded by systemic regulatory friction. FERMA has identified the EU Public Procurement Directives as a significant obstacle, particularly for public sector entities seeking adequate insurance. The federation argues that the rigid framework of these directives actively discourages insurer participation, stifles competition, and ultimately drives up costs for taxpayers. In a January 2026 position paper, FERMA presented compelling case studies from across Europe. In Norway, one public entity saw its premiums spike by 129% since 2020 while insured values grew by only 5%. In France, a public agency with over €400 million in risk exposure received just two bids for property damage coverage. These examples reveal a critical disconnect where procurement rules designed to ensure fairness are, in practice, creating dangerous coverage gaps and making essential public services more vulnerable.
Connecting Foresight to Crisis: The Council’s Role in a Volatile Present
The true value of the Next Gen Risk Council lies at the intersection of its forward-looking mission and the immediate crises plaguing the industry. Its work on future foresight is not an isolated academic exercise; it will unfold in parallel with urgent, ongoing debates over cyber insurance design, capacity shortages for public entities, and the broader erosion of insurability. By bringing together young professionals from different national and sectoral backgrounds, FERMA is deliberately cultivating a pan-European perspective on these interconnected problems. The 2026 Rotterdam forum will therefore be a pivotal moment, offering the first comprehensive look at how this emerging generation of leaders diagnoses the current landscape and what innovative pathways they propose to navigate the complex pressures shaping their profession.
Charting the Course: The Future of Risk Leadership
The establishment of the Next Gen Risk Council signals a crucial pivot in risk management—from a reactive to a proactive, foresight-driven discipline. The future of the industry will likely be shaped by the solutions this new generation develops. We can anticipate a greater emphasis on public-private partnerships to tackle systemic risks like climate change and pandemics, where the burden is too great for the private insurance market to bear alone. Furthermore, the council’s focus on foresight will likely accelerate the adoption of advanced analytics, artificial intelligence, and predictive modeling to better understand and price complex, interconnected risks. Their fresh perspective may also challenge long-held industry orthodoxies, leading to novel insurance products, new risk-sharing models, and a more integrated approach to building enterprise-wide resilience that goes beyond simple risk transfer.
Practical Imperatives for an Evolving Industry
The insights generated by the Next Gen Risk Council will have profound implications, offering a roadmap for navigating an increasingly volatile world. For business leaders and risk managers, the primary takeaway is the need to embed foresight into their strategic planning. This means moving beyond historical data and actively modeling future scenarios related to climate, technology, and geopolitics. Insurers, in turn, must accelerate innovation, developing more flexible and parametric products that can respond to the dynamic nature of modern risks. Finally, for policymakers, the challenges highlighted by FERMA’s advocacy on public procurement underscore the need for smarter, more agile regulation that enables, rather than hinders, market-based solutions for building societal resilience.
A Call to Action for a Resilient Tomorrow
The question of whether next-generation leaders can prevent an uninsurable future is less a prediction than a call to action. The forces driving risk are accelerating, and the traditional tools of insurance and risk management are being tested like never before. Initiatives like FERMA’s Next Gen Risk Council are not merely welcome; they are essential. By empowering emerging talent with the mandate to think beyond existing constraints, the industry is making a vital investment in its own survival and in the stability of the global economy. The ultimate success of this endeavor will depend on the willingness of today’s leaders to listen to, invest in, and implement the bold strategies that this new generation will undoubtedly propose. The future is not yet written, and these are the architects we have been waiting for.
