SWISS RE WARNS ON SHIFT TOWARDS NATIONAL PROTECTIONISM

Swiss Re warned realignments to the geopolitical landscape and a shift towards national protectionism were the emerging risks with the highest potential impact on the reinsurance industry over the next three years. The latest Swiss Re Sonar study indicated potential turmoil in financial markets and an erosion of legal rules could emerge as a new multi-polar world evolves. Changes to the geopolitical landscape include a shift in power towards Asia, a decline in democratic influences and an erosion in the relevance of global governance institutions. Swiss Re said national protectionism and regulatory fragmentation were jeopardising the benefits of international diversification to reinsurers, a key factor in running a global re/insurance business.