From: Captive International
The world is facing multiple interconnected crises which bring about ever-more complex risks, according to Swiss Re’s 12th SONAR emerging risk report.
The report explores critical topics of the future to foster better understanding of new or changing risks, their interactions and dependencies.
“We live in a world characterised by interconnected crises, which in turn can give rise to new risks,” said Patrick Raaflaub, Swiss Re group chief risk officer. “For re/insurers, it is key to anticipate trends and understand how major global issues such as climate change, economic uncertainty or geopolitical turmoil could impact not only the industry but also society as a whole.”
The report said that weather-related natural catastrophes are increasing in frequency and severity. While floods, wildfires and storms can lead to property damage and loss of life, the cascading effects of such events pose additional risks. Wildfires can impact the water infrastructure by contaminating water sources or cutting access to it. Floods and storms can likewise damage energy grids and disrupt transport networks, bringing production lines to a standstill due to lack of power, leading to lost production time, materials spoilage and delays to deliveries. If critical infrastructure and supply chains are affected, the accumulation of damage can be significant.
