EQS-News

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

EQS Group-News: Swiss Re Ltd / Key word(s): Research Update From zombie companies to urban mobility: Swiss Re's SONAR examines the emerging risks set to shape a post-COVID-19 world 08.06.2021 / 10:01

 

• COVID-19 to worsen income inequality; growth in the global middle class slowed and poverty levels rose in 2020
• Government support programmes have kept alive unviable zombie companies, leading to increased credit and financial market risks
• Electric vehicles and other decarbonised means of transport can cut up to 24% of current CO2 emissions from fuel combustion
• SONAR report identified emerging technological risks around biased product testing and restarting dormant industries

Zurich, 8 June 2021 - As the COVID-19 crisis continues to play a defining role in the lives of millions of people across the world, Swiss Re's SONAR 2021: New Emerging Risks Insights identified the threats that will shape the future post-COVID-19 risk landscape. These emerging risks range from the unintended consequences of government interventions through to the dangers of restarting under-maintained industrial facilities. The report also highlighted the urgent need to decarbonise the global economy, especially in the area of urban transport.

Swiss Re's Group Chief Risk Officer Patrick Raaflaub said: "When COVID-19 emerged in late 2019, few could have predicted the magnitude of its impact. Many of the actions taken to mitigate the pandemic have themselves created new risks, from the widening inequality gap to the dangers of restarting under-maintained industrial operations. As re/insurers, it is essential that we have the best possible understanding of these emerging risks. It is also important to remain vigilant on the emerging risks that are already known - especially regarding climate change - as these will impact us for years to come."