SONAR 2020: New emerging risk insights
Our SONAR report informs and inspires conversations about emerging risks, so the re/insurance industry can continue to build resilience also in turbulent times.
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The COVID-19 pandemic has accelerated new emerging risks and trends, but the current crisis shouldn’t overshadow the need for the world to transition to a more sustainable economy and a low carbon future.
The pandemic will continue to shift politics, regulation and the market, and bring about a refocus in priorities as countries move toward planning their economic recoveries. Hard hit are Millennials, who face a slump in incomes and unemployment in the wake of the coronavirus disaster. This will put more pressure on intergenerational social contracts.
Other top risks in our SONAR 2020 report include increased use of edge computing, which supercharges data exchange, vaping and e-cigarette addiction, disruptions to supply chains, and declining mental health among teenagers and young adults.
A more sustainable future post COVID-19
The COVID-19 containment measures and lockdowns may have reduced air pollution momentarily, but they will not stop global warming. We therefore need to embrace a low carbon future, where sustainability is firmly embedded in economic recovery strategies.
A transition to a low carbon economy offers risks and opportunities for the re/insurance industry, such as carbon removal solutions. The re/insurance industry can play a pivotal role in shaping a more sustainable world by providing specialist risk transfer knowledge and capacity to partners in other sectors of the economy.
After this global crisis, which shows the importance of forward-looking risk management, society will need to adapt to many changes, some of which will continue to linger on.
