The risk landscape facing the insurance sector is evolving rapidly, driven by economic, structural, technological and environmental transformations. These developments require enhanced risk modelling capabilities, forward-looking supervision, renewed investment approaches and adjusted underwriting.

Climate risks represent one of the most significant long-term challenges. Physical risks are increasing in frequency and severity, while transition risks are associated with the shift toward a low-carbon economy. They affect asset valuations and underwriting strategies.

Cyber risks are expanding in scale and complexity. Digitalisation has increased exposure to systemic cyber events that may simultaneously affect multiple sectors and jurisdictions.

Beyond climate and cyber exposures, insurers must also address broader emerging risks, including pandemics, geopolitical instability, supply-chain disruptions and technological innovation. Many of these risks are interconnected and may have systemic implications that challenge traditional risk diversification mechanisms.

These dynamics also contribute to widening protection gaps. In areas such as natural catastrophes, cyber incidents or health crises, the scale of potential losses may exceed private market capacity. Addressing these gaps requires innovative solutions, including public-private partnerships, alternative risk transfer mechanisms, improved data sharing and enhanced risk prevention strategies.

Finally, it is worth noting that new investment opportunities are emerging notably in the context of low net interest rates, which also carry specific issues.

In this context, the core challenge is to ensure both emerging risks insurability and society’s overall resilience, and insurance sector’s resilience. Indeed the insurance sector plays a critical role not only in risk transfer but also in risk anticipation, mitigation and long-term economic stability.