A new SONAR report from Swiss Re shows that extreme heat is more deadly than flooding, earthquakes and hurricanes combined. Where extreme heat was once considered to be an invisible peril, human lives lost to extreme heat, alongside damage to corporate fixed assets and disruption to infrastructure, are changing that perception.
They also note that heatwaves coinciding with strong winds can also increase the likelihood of wildfires. “According to the Swiss Re Institute, global insured losses due to wildfires reached USD $78.5-billion during 2015 to 2024,” they write. “Extreme heat events can also exacerbate other emerging risks. These include novel risks such as toxic fungi.” The report states that claims in property insurance could rise on account of mold infestation.
The report also looks at current structural risks, including growing distrust in institutions, mortality trends, increasing litigation costs related to plastics and ultra processed foods, the impact of extreme heat on six different sectors and at emerging risks including deepfakes and disinformation which are both enabling insurance fraud. The report also discusses the risks for different business lines associated with drone technology.
“Swiss Re’s annual SONAR report identifies new or changed risks that are difficult to quantify,” they write, adding that the risks selected are deserving of insurer attention for their novelty, dynamics and deemed urgency.
