We address sustainability, cyber, political and emerging risks in our core business transactions. For this, we have developed specific tools and know-how.

Risk management is an integral part of Swiss Re’s business model and key to the controlled risk-taking that underpins our financial strength. It is embedded throughout our business and ensures that the Group and the three Business Units have the necessary expertise, frameworks and infrastructure to support good risk-taking (see 2019 Financial Report, Risk and capital management and Risk management).

Sound risk management is essential for a re/insurer. Tight control of our risk exposures guarantees that we can fulfil our role in society as ultimate risk-taker and be a reliable partner to our clients when they need us. The core categories of our risk landscape comprise insurance risk (property and casualty, life and health) as well as financial market and credit risk. In addition, we consider it essential for a company committed to sustainability that it pays attention to further significant risks we may be exposed to, especially in the longer term.

Sustainability, cyber, political and emerging risks are particularly relevant in this respect. We have developed instruments and know-how that help us identify and assess all of them. This allows us to determine those risks we think we should avoid – because of their potential to increase losses, for ethical reasons or both.

In 2019, we placed special emphasis on taking measures that have the long-term goal of decarbonising our business model and addressing the carbon risks embedded in it.