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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
2024-06-12 / 10:00 CET/CEST
. 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.  
End of Media Release  
Language:     English 
Company:      Swiss Re Ltd 

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June 12, 2024 04:00 ET (08:00 GMT)