Chris Jones, chief executive, of the International Underwriting Association says 2026 will see a growing interconnection of emerging risks.

Recent years have seen the emergence of a number of cross-class emerging risks, transcending the London Market and insurance industry’s traditional lines of business.

We have, of course, seen this development with the development of cyber risks, but there are now a number of areas where risks can be found in complex interconnected systems. New product innovation is operating on a more macro scale and insurers face a challenge: how to insure risks a world that is evolving faster than its models.

Artificial intelligence (AI), climate change, the need to insure intangible assets and regulatory risk are all areas where risks can be found in complex interconnected systems.

Alongside this transformation of risk, technology is also changing the way our market is providing clients with insurance solutions. There is an increasing use of AI models to make predictions, parametric triggers and smart follow algorithmic underwriting.

These trends will only accelerate further in 2026 and the IUA plans to establish a new cross-class, multi-discipline approach to helping our members analyse them and respond. An Emerging Risks Council will coordinate the risk, underwriting and claims communities to develop risk mapping frameworks and establish thought leadership and data collection pieces.

Indeed, insurers face a number of challenges in 2026, with market conditions placing pressure on growth, rate adequacy and profitability. These are alongside the development of emerging risks on an almost unprecedented level. However, opportunities remain for those willing to be disciplined, innovative and committed to providing that front-to-end-service that clients need and value.

In an increasingly interconnected world, many of the issues IUA members will be grappling with transcend borders, industries and sectors. Tackling them calls for a commitment to open communication and collaboration with the aim of growing our collective understanding.

Our focus next year will include research examining insurance protection gaps relating to emerging risks. We will also be monitoring the cross-class development of PFAS (per- and polyfluoroalkyl substances) risks and, in particular, their impact on existing pollution clauses.

It is also important to note that London Market companies will be challenged by the volume and timing of multiple regulatory consultation exercises in 2026. Anticipating the direction of regulatory change will also place pressure on legal and compliance resources.

A common theme of the IUA’s work in representing its members will be the need for proportionate regulation. Throughout the year we will be demanding consistent distinctions between consumer and business risks, and clear recognition that retail and wholesale insurance clients do not require the same levels of protection.

Change brings opportunity and I hope that in the year ahead we will continue to see London Market companies leading the market.