As we head into the festive season the industry may well look back on the past year and hope for better things in 2026.

As the year comes to an end, the landscape of insured risks continues to evolve, shaped by global events, technological advancements, and shifts in regulatory and economic environments. Insurers and policyholders alike must remain vigilant to these emerging threats in order to protect themselves from significant financial loss.

Cyber Risks and Data Breaches

Cybersecurity remained a top concern for insurers in 2025, with cyberattacks becoming increasingly sophisticated and frequent. The proliferation of connected devices and the expansion of remote working practices have broadened the attack surface for hackers. Ransomware incidents, data breaches, and identity theft are not only costly but also disruptive to both businesses and private individuals. As a result, demand for robust cyber insurance products has surged, with insurers tightening their underwriting criteria and encouraging clients to adopt stronger cyber hygiene measures.

Climate Change and Natural Catastrophes

Extreme weather events, driven by climate change, continued to present significant insured risks. Floods, wildfires, storms, and droughts have become more common and severe, leading to larger insurance claims and challenging the traditional models used to predict and price these risks. Insurers are increasingly factoring in new climate data and leveraging advanced analytics to better assess their exposure. In some regions, rising premiums and stricter terms are now the norm as the industry grapples with the unpredictability of climate-related losses.

Pandemic and Health-Related Risks

Although the impact of COVID-19 has lessened, the legacy of the pandemic still influenced risk assessment in 2025. Insurers are closely monitoring the potential for new health crises, including outbreaks of infectious diseases and the long-term effects of COVID-19. Business interruption policies, travel insurance, and health cover are all being re-evaluated to address these evolving exposures, with a greater emphasis on exclusions, policy clarity, and flexible coverage options.

Geopolitical and Economic Instability

Political uncertainty, trade tensions, and economic volatility defined the risk environment this year. Events such as regional conflicts, sanctions, and supply chain disruptions have had far-reaching consequences for businesses with international operations. Insurers are responding by offering more bespoke solutions, such as political risk insurance and coverage for contingent business interruption, to help organisations navigate an increasingly complex global landscape.

In conclusion, 2025 presented a dynamic and challenging risk environment for insurers and insureds alike. The ability to adapt, innovate, and anticipate these major risks will be crucial for sustaining resilience and ensuring adequate protection in the face of ongoing uncertainty.

All at Emerging risks want to pass on our heartfelt thanks to our readers and those who have taken their time to share their expertise and insight.

We wish you a very Happy Christmas and our heart-felt hopes for a healthy, safe and prosperous 2026.

We also look forward to continuing to bring you the news that matters in the year ahead.