Space collisions, climate change and cyber security are key emerging risks for the insurance industry, according to a report by Guy Carpenter.

“Not only will the fallout from these risks result in losses we can currently anticipate and predict, such as increased property damage and liability vulnerability, but they also have the potential to trigger costly secondary impacts,” it says.

Breakdowns in supply chains, reputation damage and disrupted power supplies are possible flow-on effects.

Space risks include satellite collisions with debris and the effects of solar storms.

Satellites are increasingly used for global communications and broadcasting, air traffic control, weather forecasting and disaster management, the report says.

“Assets worth billions of dollars are being sent into orbit with limited control over the risk of damage by collision.”

More than 20,000 objects of at least 10cm in size are orbiting the planet, and only about 1000 of these are active satellites, according to the US Strategic Command’s Space Surveillance Network.

Changes in sun surface conditions can also influence technology on Earth, potentially causing blackouts.

The report says climate change will affect the magnitude and frequency of flooding, affect drought patterns, intensify cyclones and increase weather variability.

Every company that uses technology and handles data should consider cyber cover, Guy Carpenter warns. Keeping pace with the evolution of technology is a key challenge.

The report says Marsh has seen US client demand for cyber cover grow more than 30% annually on average in recent years.

“Unfortunately, companies often assume that merely investing more in technology solutions will help mitigate cyber risk. There is no technological silver bullet that will protect a company.”

Guy Carpenter says awareness of evolving risks puts insurers in a better position to react and offer the type of cover required.