Emerging risks insights
Our vital systems and infrastructures are under threat from emerging risks that have the potential to cause claims of a substantial magnitude.
Loading ...
Emerging risks are new or future risks whose hazard potential is not yet reliably known and whose implications are difficult to assess. These risks may evolve over time from weak signals to clear tendencies with a high potential for danger.
New and evolving risks: Rethinking reinsurance in a world of uncertainty
Emerging risks may entail either risks which have arisen recently or are anticipated in the future (new risks) or risks which, although known previously, demonstrate an evolving character or show changing dynamics in unexpected ways with the consequence of unanticipated losses (evolving risks).
It is therefore important to detect such risks at an early stage and to systematically identify them, determine their relevance and assess the risk that they pose. As the frequency and severity of these risks in several cases are completely unknown, the traditional risk identification and monitoring processes will not work. Specific strategies and approaches must be implemented to cope with them properly, as there are typically no historical data for risk managers and underwriters to rely on.
Emerging risks in a rapidly changing world
As an integral part of its risk managing process, Hannover Re has established the research group "Emerging Risks and Scientific Affairs". The group identifies, evaluates and monitors these emerging risks. An additional task for this interdisciplinary group is to translate science into insurance terms to close the gap between ever-increasing speed in scientific progress and day-to-day underwriting and risk management. Hannover Re's experts are constantly developing new approaches to analyse emerging risks as well as reinsurance solutions to ensure long-term and sustainable business success in the face of existing challenges.
The OECD addresses the growing complexity of emerging risks in its 2025 publication "Managing Emerging Critical Risks":
"Across the globe, emerging critical risks – from extreme natural hazards and disruptive technologies to geopolitical shocks and transboundary health threats – are increasing in frequency, complexity, and unpredictability. These risks often expose gaps in conventional governance arrangements, with impacts spanning sectors and boundaries. … Emerging critical risks demand anticipatory, adaptive, and co-ordinated responses that go beyond contingency planning processes for well-understood risks."
In order to increase the awareness of such emerging risks in the (re)insurance industry, Hannover Re publishes risk briefings with reference to current topics on a regular basis.