Swiss Re urges vigilance amid geopolitical, economic, and climate risks

In their mid-year letter to shareholders, reinsurance company Swiss Re’s Chairman Jacques de Vaucleroy and Group Chief Executive Officer, Andreas Berger stressed the importance of maintaining vigilance, even in a period of strong operational performance.

They pointed out that 2025’s outlook remains unsettled, shaped by geopolitical tensions and macroeconomic uncertainty, which they believe could disrupt supply chains, sustain inflationary pressures, and slow global economic growth.

The executives observed that both man-made and natural events have tested the resilience of the insurance sector this year.

They referenced industrial fires in California, Europe, and North America, as well as aviation incidents in India and the United States, as examples of events that have added to claims severity.

Natural catastrophes — including the Los Angeles wildfires, the earthquake in Myanmar and Thailand, and the rock-and-glacier slide in the Swiss Alps that buried the village of Blatten — were cited as reminders of the human and financial impacts of such disasters.

De Vaucleroy and Berger warned that as the wind season enters its peak, the industry faces ongoing pressures from long-term trends such as urbanisation, the concentration of high-value assets in hazard-prone regions, and inflation.

They also highlighted the rising frequency and intensity of climate-related hazards — among them floods, wildfires, and droughts — as factors that continue to push insured losses higher over time.

Addressing these risks, they argued, will require coordinated efforts between re/insurers, governments, regulators, businesses, and individuals.

The leaders stated that Swiss Re intends to work with its partners to improve the insurability of risks, make protection more affordable, and reduce coverage gaps that leave communities vulnerable.

They reiterated the company’s focus on disciplined underwriting, cost efficiency, and leveraging its modelling capabilities and data-driven risk insights to help clients navigate uncertainty and manage risk effectively.