1. The document discusses the concept of "Risk Singularity", which is defined as a hypothetical moment in the future when advances in data, intelligence, and processes cause a dramatic and irreversible change in the risk management industry. 2. It describes three generations/phases that will occur on the path to Risk Singularity: Generation I involves ubiquitous data, Generation II involves ubiquitous information, and Generation III involves ubiquitous intelligence and instant, invisible insurance processing. 3. Over time, more firms and sectors will participate in shared data through blockchain, and the majority of risk data will come from external IoT sources rather than insurers. Risk will become more commoditized and bought/sold on open markets.

1. 1 | The Institutes – RiskStream Collaborative TM
The Institutes RiskStream Collaborative TM
Path to the Risk Singularity
Christopher G. McDaniel

2. 2 | The Institutes – RiskStream Collaborative TM
Risk Singularity Defined
Risk Singularity
A hypothetical moment in time when data,
intelligence and process transformation have become
so advanced that the Risk Management industry
undergoes a dramatic and irreversible change
Technology Singularity
A hypothetical moment in time when artificial
intelligence and other technologies have become
so advanced that humanity undergoes a dramatic
and irreversible change

3. 3 | The Institutes – RiskStream Collaborative TM
Data will no longer
be “owned” by individual
risk management firms
Majority of Data will
come from external risk
sources
Blurred lines between
insurance sectors and
geographic locations
Unobtrusive seamless
foundation of
Blockchain, AI and IOT
Risk Singularity: What Changes We Will See
Risk assessment will be
automated and
instantaneous
Situational/environmental
real-time micro
transactions
Industry processes will
evolve into real-time
scalable micro-processes
Commoditized risk will be
bought, sold and trade by
organizations/individuals
Risk processing
will become imbedded
and invisible to the layperson
Risk education shift toward
emerging technologies, channels,
processes and products

4. 4 | The Institutes – RiskStream Collaborative TM
Risk Singularity: Timeline & Phases
Year 1 Year 3Year 2 Year 4 Year 5 Year 6 Year 8Year 7 Year 9 Year 10 Year 11 Year 13Year 12 Year 14 Year 15
Generation I:
Ubiquitous Data
Generation II:
Ubiquitous Information
Generation III:
Ubiquitous Intelligence
Information shift occurs that provides
for data sharing through an industry
wide Blockchain data layer
• Majority of Large US Firms Participate
• Some Medium and Small US Firms Participate
• Many Large Global Firms Participate
• Some Medium and Small Global Firms Participate
• P&C and L&A Sectors Participate
• Localized Data
• Sector Specific Data
• Stand-Alone Use Cases
• Mainly Efficiency Play Use Cases
• Data Siloed By Geography and Sector
• US Preliminary Integration of IoT and Telematics
Information
• Individual Insurtech classes and certifications based on
technologies
Major shift to majority of risk data
coming from external sources rather
than from within the insurance industry.
• Rise of Internet of Things as the main provider of risk information.
• Migration to model of universal ownership of data.
• Dawn of age of micro transactions for risk assessment, policy
application and claims processing in real time, based on evolving
situational and environmental factors
• All Large US Firms Participate
• Majority of Medium and Small US Firms Participate
• Majority of Global Large Firms Participate
• Some Global Medium and Small Firms Participate
• All US Sectors Participate (P&C, L&A, Reinsurance, Retirement,
Commercial, Workers Comp, Group Health and Surety & Specialty)
• Multiple Global Sector Participation
• US Shared Data Between Sectors
• Multiple Use Cases Make Up Systems (i.e. Auto Loss)
• Sector and Geographic Specific Shift to New Products, Channels and
Processes and Less Efficiency Use Cases
• Predictive Analytics Within Geography/ Sector Data
• Global Preliminary Integration of IoT and Telematics Information
• New classes and certifications based on new products, channels
processes
All insurance processing is instantaneous,
real-time and completely invisible to the
consumer.
• Processing happens instantly based on a consumer defined
profile of their tolerance and thresholds.
• Insurance sectors are completely assimilated into one global
behind the scenes risk management framework.
• Risk is commoditized and bought and sold on the open market.
• All Large Global Firms Participate
• All Global Medium and Small Firms Participate
• All Global Sectors Participate (P&C, L&A, Reinsurance,
Retirement, Commercial, Workers Comp, Group Health and
Surety and Specialty)
• Global Shared Data Between Sectors and Geographies
• Global Use Cases Systems
• Global Sector and Geographic Focus on New Products, Channels
and Processes
• Global AI and Machine Learning Implementation Across All
Sectors and Geographies.
• Seamless Global Integration of IoT and Telematics Information
• Shift to Global Value Focused External Risk Management Training
& Certification

5. 5 | The Institutes – RiskStream Collaborative TM
Growth
Risk Singularity Path Illustrated
Generation I
“Ubiquitous Data”
Generation II
“Ubiquitous Information”
Generation III
“Ubiquitous Intelligence”
Member Growth
US Large US Medium & Small Global Large Global Medium & Small
P&C L&A Re Ret WC GB H SB
  
   
Use Case Evolution Data Evolution Solutions
Education
Technical
Training
  

P&C L&A Re Ret WC GB H SB
   


 
P&C L&A Re Ret WC GB H SB
   


 
New Channel,
Product, Ways of
doing Business
CertificationsNew Channel,
Product, ways of
doing business
training
Technical
Certifications
Shift to External Risk
Management
Training &
Certification

6. 6 | The Institutes – RiskStream Collaborative TM
Questions