Swiss Re Identifies Rising Risks Including Declining Trust, Excess Mortality, and Digital Liability

The latest 2025 SONAR report from Swiss Re pinpoints significant structural and emerging risks facing the insurance industry. Among high-impact structural risks identified are declining consumer trust in institutions—including insurers—due to factors such as economic pressures, regulatory constraints, and natural catastrophes. This declining trust significantly influences consumer decisions and poses long-term challenges to insurers as they aim to maintain customer confidence amid rising catastrophe-related losses.

Excess mortality variance is another structural risk highlighted, particularly affecting life and health insurers. Elevated mortality rates, expected to continue beyond 2027 in the U.S. and the U.K. following the COVID-19 pandemic, add considerable uncertainty in pricing life insurance and managing reserves. Additionally, advancements in medical treatments and fluctuating efficacy of obesity drugs further complicate long-term mortality projections, emphasizing the need for ongoing adaptation in underwriting practices.

Digital technology introduces increased liability exposure due to the surge in artificial intelligence incidents, leading to a higher frequency of intellectual property and defamation lawsuits. These evolving digital liabilities, including risks posed by deepfake technology and AI-generated disinformation, could elevate claim complexities and fraud, impacting specialty, casualty, and operational insurance lines. Additionally, deepfakes and disinformation erode trust and complicate insurers’ operational processes, signaling a need for proactive technological and legal strategies.

Among emerging risks, extreme heat has been identified as notably damaging, affecting property, specialty, and life and health insurance lines due to infrastructure damage, heightened wildfire risks, and increasing health claims. Swiss Re also highlights fungi-related losses and innovations in healthcare technology, which present significant medium-impact risks requiring vigilant monitoring and tailored risk management practices to safeguard future business resilience.