Global insurance and reinsurance risk evolution

The global insurance and reinsurance markets are navigating an increasingly complex risk landscape driven by climate change, cyber threats, and economic pressures.

Regarding natural catastrophes, reports indicate that insured losses from disasters are growing steadily. Swiss Re notes an annual growth rate of 5–7% in insured natural catastrophe losses, identifying wildfire as the fastest-growing weather peril globally. In Europe, Munich Re observes that insured losses from natural disasters have grown by an average of 5% annually since 1980, with acceleration noted in the last decade. To combat these trends, organizations like Marsh and the World Economic Forum are advocating for ‘place-based resilience’ to protect infrastructure and supply chains.

Cyber risks are also evolving rapidly due to artificial intelligence. The time required to exploit vulnerabilities has dropped from 745 days in 2020 to just hours in 2026, prompting a shift toward more specialized reinsurance structures.

Additionally, the sector faces operational challenges. In the municipal sector, companies managing waste and energy are being classified as high-risk due to fire hazards. Furthermore, inflation in claim costs is outpacing premium growth; for example, in Germany, the rising cost of spare parts has significantly exceeded the annual increase in average premiums.