Increasing global economic integration, technological advances and geopolitical friction are “profoundly complicating the risk landscape”, a Marsh McLennan report warns.

“[It is] ever more important for companies to anticipate shocks and adverse trends that might damage corporate reputation and growth expectations,” the report says.

The “intersection of global megatrends” – such as demographic shifts, climate change, technology innovation and movements in the balance of global economic and political power – will create “sudden surges… unexpected twists and shocks”.

In the insurance sector, the report identifies two critical threats: massive losses should nanotechnology have damaging side-effects; and driverless cars and ride-sharing eroding core property and casualty revenue streams by $US50-75 billion ($69-97 billion) worldwide.

Threats primarily linked to the banking, healthcare and consumer goods and services sectors also represent risks to the insurance industry. These include pre-digital banking models being made obsolete by “fintech” capabilities, with business shifting to “new model” suppliers; the “demographic time bomb” resulting in healthcare capacity and cost challenges; and nimbler new entrants taking major shares of consumer market growth.

The report notes resilience against emerging risks is a core leadership responsibility.

“Chief executives and chief financial officers should actively promote the consideration of global and emerging risks. Enlightened company leaders are as familiar with the threats posed by global and emerging risks as they are with internal hindrances to performance.”

The report, The Emerging Risks Quandary, was prepared by the director of Marsh & McLennan’s Global Risk Centre, Richard Smith-Bingham.