Fifth-generation (5G) cellular broadband technology is one of five emerging risks Swiss Re identifies as having a “high potential impact” on the general and life insurance industry.

The other key risks in the reinsurer’s Sonar report are climate change’s impact on public health, the fiscal and monetary policy balance, applying digital solutions to legacy hardware and genetic testing.

The annual report is compiled using Swiss Re’s Systematic Observation of Notions Associated with Risk tool, which collects input and feedback from underwriters, client managers, risk experts and others across the business.

“We define emerging risks as newly developing or changing risks that are difficult to quantify,” the Sonar report says.

“The loss potential of these risks is currently difficult to estimate, but they may have a major business impact on the insurance industry.

“To assess and underwrite risks, the insurance industry relies on experience – that is, historical data for identified and insurable risks.

“However, historical data alone cannot build understanding of the future risk landscape, which is forever changing and presents new and previously unforeseen risks.

“Here, the insurance industry needs to demonstrate foresight and make use of sound future intelligence.”

See ANALYSIS.