Beyond broken infrastructure - Swiss Re explores cascading effects of
natural disasters and other key emerging risks

Swiss Re Ltd / Key word(s): Research Update/Study
Beyond broken infrastructure - Swiss Re explores cascading effects of
natural disasters and other key emerging risks

12.06.2024 / 10:00 CET/CEST

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  * The 2024 edition of Swiss Re's SONAR report features 16 emerging risks
    and their potential impacts on the insurance sector and society

  * Key risks include the cascading effects of natural disasters, the
    weakening resilience of supply chains and the repercussions of
    persistent underfunding of healthcare systems

  * Compounding effects of natural catastrophes on critical infrastructure
    and supply chains generate loss accumulation

  * Decreasing resilience of supply chains leads to more business
    interruptions, risking economic slowdown

  * Underfunding of public health can lead to higher morbidity and mortality
    rates, particularly in case of a future pandemic, which could also
    result in lower economic growth

Zurich, 12 June 2024 - The world is facing multiple interconnected crises
which bring about ever-more complex risks, finds Swiss Re's 12th SONAR
emerging risk report. It explores critical topics of the future to foster
better understanding of new or changing risks, their interactions and
dependencies.

Patrick Raaflaub, Swiss Re Group Chief Risk Officer, said: 'We live in a
world characterised by interconnected crises, which in turn can give rise to
new risks. For re/insurers, it is key to anticipate trends and understand
how major global issues such as climate change, economic uncertainty or
geopolitical turmoil could impact not only the industry but also society as
a whole.'

Weather-related natural catastrophes are increasing in frequency and
severity. While floods, wildfires and storms can lead to property damage and
loss of life, the cascading effects of such events pose additional risks.
Wildfires can impact the water infrastructure by contaminating water sources
or cutting access to it. Floods and storms can likewise damage energy grids
and disrupt transport networks, bringing production lines to a standstill
due to lack of power, leading to lost production time, materials spoilage
and delays to deliveries. If critical infrastructure and supply chains are
affected, the accumulation of damage can be significant.

While the security of supply chains was a priority for companies following
the large-scale disruptions caused by the COVID-19 pandemic, the focus has
shifted back to immediate cost savings. The cost pressure has grown, but so
too have the risks to supply chains - as exemplified by the Red Sea crisis.
Due to the more volatile geopolitical landscape, increasing frequencies of
extreme weather events, economic uncertainty, and heightened cyber and
technology risks, key supply routes around the globe are likely to become
less secure. Given the current situation and the negative outlook on these
risk drivers, supply chain resilience should be at the top of companies'
agendas. If risks accumulate or coincide with an already stressed supply
chain, the economic fallout could be significant.

Climate change and supply chain issues also affect the healthcare
infrastructure, exacerbated by consistent underfunding of healthcare
systems. Essential services such as water, sanitation and electricity
supplies may be compromised under more extreme climate scenarios that cause
a higher risk of frequent flooding and other disruptive events. Weakened
health services increase risks for societies, with delayed or inadequate
care contributing to higher morbidity and mortality, and thus also impact
economies through increased health-related absenteeism and understaffing.
Underfunding of healthcare systems and the impacts thereof are a concern
across low-, middle- and high-income countries.

How to order this SONAR report:

The English version of the 2024 SONAR report is available here.

Swiss Re SONAR 2024: New emerging risk insights - Swiss Re is hosting a
special hybrid event on 17 June, 14:30 CEST, featuring Swiss Re Group Chief
Risk Officer Patrick Raaflaub to mark the release of the SONAR 2024 report
on new emerging risk insights.
You can register here.

Disclaimer

Although all the information discussed herein was taken from reliable
sources, Swiss Re does not accept any responsibility for the accuracy or
comprehensiveness of the information given or forward-looking statements
made. The information provided and forward-looking statements made are for
informational purposes only and in no way constitute or should be taken to
reflect Swiss Re's position, in particular in relation to any ongoing or
future dispute. In no event shall Swiss Re be liable for any financial or
consequential loss or damage arising in connection with the use of this
information and readers are cautioned not to place undue reliance on
forward-looking statements. Swiss Re undertakes no obligation to publicly
revise or update any forward-looking statements, whether as a result of new
information, future events or otherwise.

About 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.


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   Language:       English
   Company:        Swiss Re Ltd
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   EQS News ID:    1923605

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1923605 12.06.2024 CET/CEST