EQS-News

From zombie companies to urban mobility: Swiss Re's SONAR examines the emerging risks set to shape a post-COVID-19 world - Seite 3

Zombie companies are a potential burden for the financial sector, especially when it comes to increased credit default rates. Low interest rates are incentivising companies to take up bank credit, creating a risk of large-scale defaults on these loans once government support dries up and zombie companies become insolvent. The Institute of International Finance reported that bank loans to small-and-medium enterprises in the US rose by 6% in 2020.[iii]

To avoid a potential surge of defaults and bankruptcies, governments will need to carefully decide how and when to withdraw stimulus packages. A recent Swiss Re Institute paper concluded that for sustainable economic recovery, policy should support businesses that are viable in the long run and facilitate the orderly restructuring of non-viable firms.[iv]

New means of urban mobility to decarbonise transportation

Rapid decarbonisation of the global value chain is essential to avoid the most extreme effects of global warming and climate change. One important target area for decarbonisation is transportation, which currently contributes about 24% of global CO2 emissions from fuel combustion.

The move to electromobility, hydrogen fuel cells and non-fossil-based fuel alternatives is well underway and promises a sustainable response to traffic-loaded urban centres. For example, there are already sophisticated micro-mobility systems such as rentable e-scooters in many cities. In the future, the options are open to develop self-driving delivery vehicles, or even urban air mobility options such as clean-powered flying taxis.

The benefits of the revolution in clean transport are clear. However, there are emerging risks. City planners face the challenge of creating ways for new e-vehicles to safely coexist with traditional transport and infrastructure. Injuries from e-scooters and e-bikes are a potential source of new liability claims. Further, the rental model of many of these new forms of urban transport requires sharing of personal information, giving rise to risks around possible data theft. Legislation and regulation will therefore also need to be updated in order to mitigate these risks.