Edge Computing, Supply Chains, Deepfakes Among 2020’s Top Emerging Risks: Swiss Re

Pandemic threats were once on the list of potential emerging risks facing the insurance industry and society. Now that this risk has materialized with the COVID-19 crisis, it is perhaps a good time to take a look at the latest emerging risks, which could present potential downside threats and upside rewards for the industry.

This is the aim of Swiss Re’s latest SONAR report, which details 14 emerging risks for 2020, including the top three with the highest potential impact: cyber security, intergenerational imbalances (highlighted by the coronavirus pandemic) and carbon removal.

Drilling down into the report, there are eight short-term risks (of less than three years) out of the overall 14 risks identified by SONAR. The shorter-term risks are:

Longer-Term Emerging Risks

The six remaining emerging risks are longer-term, of more than three years. (Insurance Journal has described the only risk on the list rated as “high” by SONAR, which is carbon removal.)

SONAR said the COVID-19 pandemic has amplified some of these risks and trends, such as intergenerational tensions, supply chain disruptions and the fragility of public healthcare.

SONAR’s emerging risks list has been published every year since 2013. SONAR stands for Systematic Observation of Notions Associated with Risk. It is Swiss Re’s process for identifying, assessing and managing emerging risks. The company uses a web-based platform to collect early signals of emerging risks.

Source: Swiss Re’s SONAR