Geopolitical shifts and “erosion of risk diversification” are the highest-impact, near-term risks flagged in this year’s Swiss Re Sonar report.

The report features 18 emerging risks, divided into different themes and likely time horizons, and ranked according to high, medium and low impact.

“Our Sonar report is not about forecasting the future or covering all emerging risks, but rather about preparing for its potentialities,” Swiss Re Group Chief Risk Officer Patrick Raaflaub says.

“The more transparency and the more time we have, the better we can adapt to the changing risk landscape.”

Geopolitical dangers relate to changes in global power balances, the report says, while protectionism and regulatory fragmentation pose a risk to the international diversification that is part of the reinsurance business model.

See ANALYSIS.