Uncertainty engulfs the global risk landscape
Source: Middle East Insurance Review | Jul 2023
This year’s emerging risk insights by Swiss Re, SONAR 2023: New emerging risk insights, reflect uncertainty currently shaping the global risk landscape of the insurance industry, including geopolitical tensions, volatile financial markets and technological innovations such as generative AI.
Geopolitical tensions and financial market volatility persist in the post-pandemic world marked by Russia president Vladimir Putin’s invasion of Ukraine, rising interest rates and inflation, according to Swiss Re’s SONAR 2023. In parallel, global polarisation and conflict may give rise to mutually exclusive markets. Even the risk of nuclear events is heightened. Inflationary pressures bring into question the sustainability of sovereign debt across the globe. The threat of a new pandemic still looms. The recent outbreaks of Avian influenza are the largest to date in different parts of the world.
Swiss Re chief risk officer Patrick Raaflaub said, “Turbulent times are those where expectations are challenged and predictions fail. These times tax the resilience of individuals, organisations and society at large.”
Technological innovations impact society and business
Technological advances continue to drive societal and economic change, said the report. The digital economy offers new opportunities for insurers, such as embedded insurance or cost savings in product testing, design and maintenance.
New health and environmental risks
Growing concerns around mental health impacts from addictive online platforms are putting liability pressure on social media platform providers.
Other emerging risks include dangers from solar radiation management which aims to reverse climate change and unknown long-term health risks from weight-loss injections that are intended to manage obesity but are becoming popular for aesthetic use in non-overweight people. M