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Future risks require action now

Swiss Re’s annual Sonar report has identified turmoil in emerging markets and increased localisation of internet networks within country borders as key risks facing the insurance industry.

Other risks that lie “beyond the horizon” include a “crisis of trust” in institutions and the “legal and pricing risks of the sharing economy”.

Swiss Re Group CRO Patrick Raaflaub says that irrespective of the proximity of emerging risks, insurers need to act on them now.

“Risk management is not just about managing risks in the present,” he said. “It is about anticipating future ones to make sure we will be in a position to deal with them.

“These risks may only fully reveal themselves to future generations. That doesn’t mean we shouldn’t act today to reduce uncertainty and alleviate their burden.”

Swiss Re says the risks it has identified in its report are relevant to life and non-life insurance areas.

“Detecting early signals of looming threats allows for a proactive approach to risk mitigation and is an important step to help society as a whole to become more resilient,” Dr Raaflaub said.

Details in ANALYSIS