Emerging and interconnected risks are creating new challenges for the global (re)insurance industry.

The warning comes from reinsurers Swiss re who used the annual Rendez-Vous de Septembre in Monaco to say the sector needs to do more as clients seek capacity and answers.

Urs Baertschi, chief executive officer Property & Casualty Reinsurance at Swiss Re, said: “The underlying need for protection continues to grow as the risk landscape evolves and becomes more interconnected. Our clients need more than reinsurance capacity from us – they need risk expertise, data and solutions that help them navigate an increasingly complex environment. We combine these capabilities to help our clients understand emerging exposures, manage volatility and build resilience.”

The underwriters added that natural catastrophe risk remains a significant driver of reinsurance demand. Insured natural catastrophe losses continue to follow a 5–7% annual growth rate, driven by increasing exposures, rising asset values and changing hazard patterns.

Swiss Re revealed its modelling indicates that insured losses could reach around $320 billion in a 2026 peak loss scenario, illustrating the value of reinsurance protection against low-frequency, high-severity events.

“Today, a cluster of hurricanes, such as Harvey, Irma and Maria (2017), can push annual insured losses above $120 billion, even without a single record-breaking event,” it explained.

The 2026 European wildfire season is one example of how natural catastrophe risks are evolving. Wildfire is the fastest-growing weather peril globally, including in Europe, where insured wildfire losses have increased by an estimated 8–11% annually over recent decades. Exposure continues to rise as more people and assets are located in wildfire-prone areas. Better data, modelling, prevention and adaptation can improve understanding of these changing risks and support more effective risk transfer.

The huge investment in data centres to drive the growth of artificial intelligence will test the market and its capacity.

“Cumulative investment in data centres is projected to exceed $6 trillion by 2030, with Swiss Re Institute estimating a related global insurance premium opportunity of $91 billion by the end of the decade,” the reinsurer added. “According to Swiss Re Institute, around 40% of US data centre capacity is located in significant-to-very-high tornado day zones.

“As data centres grow in size and relevance, their risk profile is also becoming more complex. High asset values combined with dependencies on electricity grids, water, technology supply chains and digital infrastructure create potential concentrations across individual sites and wider networks.”

Geopolitical tensions are adding uncertainty to the risk landscape reinsurers were warned. Disruption to global value chains can create recurring shocks to energy, commodities and supply chains, adding to inflationary pressure. For insurers and reinsurers, this can translate into higher repair and replacement costs and ultimately higher claims costs. Understanding the knock-on impacts and potential concentrations is increasingly important to strengthening resilience.

Gianfranco Lot, chief underwriting officer Property & Casualty Reinsurance at Swiss Re, said: “As risks become more complex, underwriting increasingly depends on understanding how exposures interact and where concentrations can develop. Our data, modelling and risk expertise help us identify accumulations, price risk appropriately and make portfolio decisions that support clients as established risks evolve and new ones emerge.”