UK markets closed
  • NIKKEI 225

    26,153.81
    +218.19 (+0.84%)
     
  • HANG SENG

    21,830.35
    -29.44 (-0.13%)
     
  • CRUDE OIL

    110.59
    +2.16 (+1.99%)
     
  • GOLD FUTURES

    1,809.30
    +7.80 (+0.43%)
     
  • DOW

    31,097.26
    +321.86 (+1.05%)
     
  • BTC-GBP

    16,464.99
    +436.29 (+2.72%)
     
  • CMC Crypto 200

    429.24
    +9.10 (+2.17%)
     
  • ^IXIC

    11,127.84
    +99.14 (+0.90%)
     
  • ^FTAS

    3,967.61
    +27.58 (+0.70%)
     

From crypto Picassos to frozen anthrax: Swiss Re's 10th edition of SONAR scans the horizon for emerging risks

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·5-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Swiss Re Ltd / Key word(s): Research Update
From crypto Picassos to frozen anthrax: Swiss Re's 10th edition of SONAR scans the horizon for emerging risks
16.06.2022 / 10:00

  • 10th anniversary SONAR report covers 14 emerging risk topics across technological, economic, social and environmental areas

  • Trends in crypto assets are revolutionising the financial landscape, leading to new challenges for insurers

  • Thawing permafrost and the struggle to feed a growing world population while cutting agricultural carbon emissions are just two challenges emerging from climate change

Zurich, 16 June 2022 – We live in a world where billionaires can take day trips into the stratosphere, crypto assets are challenging established financial norms and climate change is changing the very substance of our physical environment. New risks are arising while the global community deals with known challenges such as the pandemic, war in Ukraine, economic turbulence and failing trust in established social institutions. Swiss Re's SONAR report, now celebrating its 10th anniversary, scans the horizon for emerging risks for the insurance industry.

Patrick Raaflaub, Group Chief Risk Officer at Swiss Re, says: "A global pandemic, geopolitical conflicts, surging inflation and an unstoppable climate crisis – these are just some of the many risks that SONAR has examined over the past decade that have ultimately materialised. However, researching new risks is not about forecasting. It is about raising awareness of risks that may impact society and preparing ourselves accordingly."

Crypto assets and quantum computing create new risks within the global financial system

In the current highly technology-dependent financial system, cryptocurrencies such as Bitcoin and Ether have established themselves as potential challengers to conventional currencies. Alongside these new forms of currency, further crypto assets have emerged. Tokens, for example, allow people to buy digital representations of real assets such as art works or real estate. They can be traded and grant their owner access to assets, products or services. Nowadays, an art lover can buy a fraction of a Picasso. The fluid ownership, taxation, regulatory issues and other risks related to the new asset classes present insurers with fresh challenges. For instance, are certain crypto assets implicitly covered by existing property or cyber policies?

 

The security of the new digital financial economy is also facing new risks. With quantum computing, for example, a new generation of computers is on the verge of completing tasks far beyond the reach of current machines. These hyper-smart technologies offer significant benefits: sophisticated weather modelling, advanced medical research capabilities and financial analysis. With increasing maturity, they can also become a threat to existing IT-security protocols, potentially hacking standard encryption keys used in online communications and data transfer.

 

A new generation of emerging risks arising from climate change

Swiss Re identified the threat of climate change as far back as 1979. More than 40 years later, the consequences of climate risk are very much present in our everyday lives. Beyond what we already see, climate change creates a new generation of emerging risks. This year's SONAR report explores how the thawing of permafrost, which covers a quarter of the northern hemisphere, could not only damage infrastructure and accelerate climate hazards but also release disease-carrying pathogens that have been frozen for decades.

 

Agriculture is an activity that is especially susceptible to climate change – yet it is also an area that is struggling to reduce its contribution to global warming. Emissions from global food production account for about 31% of total man-made carbon emissions. The challenge for agriculture is to improve productivity and feed more people while cutting emissions at the same time. Insurers can play a vital role in faster adoption and scaling up of sustainable farming practices by offering suitable coverage solutions and facilitating climate-smart and regenerative agriculture.

 

10th anniversary: the benefits of preparation
There was a time when today's big challenges such as climate change, pandemics, geopolitical conflict and inflation were themselves emerging risks. SONAR's 10th anniversary edition is a poignant reminder of the long-term potential of emerging risks and how the insurance industry helps to build societal resilience.

 

The 10th Anniversary SONAR can be found on Swiss Re's website. Register here for the Swiss Re SONAR 2022: New emerging risk insights event with Swiss Re Group Chief Risk Officer Patrick Raaflaub on 16 June 2022, 11–12h CEST. Swiss Re's SONAR programme stands for "Systematic Observation of Notions Associated with Risk". It is Swiss Re’s process for identifying, assessing and managing emerging risks. Experts across the company collect early signals of emerging risks, which are assessed and prioritised by an emerging risk management team. SONAR findings have been published for external audiences since 2013.

For further information please contact Swiss Re Media Relations: + 41 (0)43 285 7171 or Media_Relations@Swissre.com.
Please use this link to access the
Swiss Re website.

Swiss Re
The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk – from natural catastrophes to climate change, from ageing populations to cyber crime. The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally.

Cautionary note on forward-looking statements
Certain statements and illustrations contained herein are forward-looking. These statements (including as to plans, objectives, targets, and trends) and illustrations provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to a historical fact or current fact. Further information on forward looking statements can be found in the Legal Notice section of Swiss Re's website.


End of Media Release

Language:

English

Company:

Swiss Re Ltd

Mythenquai 50/60

8022 Zurich

Switzerland

Phone:

+41 (0) 43 285 71 71

E-mail:

Media_Relations@swissre.com

Internet:

www.swissre.com

ISIN:

CH0126881561

Valor:

12688156

Listed:

SIX Swiss Exchange

EQS News ID:

1377245


 

End of News

EQS News Service

show this
show this
Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting