Date Added: Aug 2009
In medicine, an iatrogenic risk is a risk that arises from the medical treatment itself, such as side effects of surgery or drugs. The same phenomenon arises in the process of regulatory and legislative actions intended to facilitate mitigating and financing of catastrophic risks. Unanticipated regulatory or legislative fiats can have fundamental effects on insured risks. Moreover, economic disruptions in the much more densely interdependent global economy can also have systemic effects well beyond their direct locus of impact. These systemic risks are likely to become more evident in the catastrophe risk area in the years ahead, as the effects of climate change become more apparent.