Rising natural catastrophe losses highlight the importance of prevention, mitigation measures, and public-private collaboration, with geopolitical uncertainty and fragmentation risks further complicating the re/insurance landscape, according to Swiss Re.

As industry leaders meet at Rendez-Vous de Septembre in Monte Carlo this week, discussion points include how geopolitical tensions, protectionist policies and shifting economics are reshaping global supply chains, raising costs, amplifying uncertainty, and increasing the risk of long-term fragmentation.

Urs Baertschi, CEO of P&C reinsurance at Swiss Re, said: “In a time of elevated global uncertainty and rapid adoption of AI, re/insurance stands as a stabilising pillar. We look forward to engaging with our clients, partners and the public sector on how to further strengthen resilience, harness technology and address the evolving challenges of a changing world.”

Strikes, riots and civil commotion are also increasing around the world, with more than 70 countries having experienced significant protests in the last 12 months. Swiss Re said it is important to adopt a holistic understanding of risks and to focus on accumulation management and disciplined underwriting to navigate the current uncertain geopolitical environment.

The increasing impact of extreme weather remains at the forefront of industry concerns too. According to Swiss Re Institute, the combination of economic growth, claims inflation and more intense perils has pushed annual insured natural catastrophe losses well above US$100bn in the past few years and increased the possibility of annual insured losses accelerating to US$200bn or even US$300bn in a peak year.

Swiss Re suggests that AI offers a transformative opportunity for the re/insurance industry, outpacing initial expectations. It adds that in a business where the vast majority of information resides in emails, submissions, contracts and claims files, the ability to process and learn from unstructured inputs is no longer a technical aspiration, but a competitive requirement.

Gianfranco Lot, CUO of P&C reinsurance at Swiss Re, said: “In the face of increasing risks, data will become even more important. It’s the basis for risk and accumulation management, and AI will be a game changer.”

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