The interconnectivity of risks remains a conundrum for the C-suite in 2026. While it may be clear that neither a siloed nor whack-a-mole approach is likely to prove successful, where should businesses and, in particular, insurers focus now to prepare for whatever the future may hold?

Over the last few years, our predictions have focused on different ESG issues, from the environment, to regulation and most recently in 2025 on social issues. This year, our predictions identify a more linear chain of overlapping themes, with geopolitics intersecting with ESG as a single theme, in turn overlapping with technology. Below is our pick of some of the strategic priorities for the market in the year ahead.

Geopolitics

Tariffs, sanctions, energy insecurity, high inflation and supply-chain disruption have created the most challenging trading and economic conditions for many decades. Our interconnected world means company directors need to be aware of the different geopolitical forces at play, and how critical they are to corporate decision-making. Investment and growth strategy, employment, and legal and regulatory compliance are all potentially impacted. Diversity in the composition of the board will broaden knowledge and understanding on how best to guide companies through these economic and geopolitical uncertainties. 

At a more granular level, we will also likely see further development in terrorism policy wordings as a result of the 2025 update to Pool Re's Treaty. Changes include a bifurcation of risks into conventional and non-conventional terrorism, which insurers may seek to replicate into their wordings. We anticipate further innovation and expect a shift away from standalone terrorism cover towards an embedded cover that reintroduces cover into standard commercial property wordings.

ESG and emerging risks

Landmark climate advisory opinions issued in 2025 will prompt both regulation and litigation targeted at corporates in 2026. The opinions clarified the obligations of states to respond to the climate crisis, including the regulation of private actors such as companies. In addition, the opinions themselves will likely be used to supplement arguments used by activists and other claimants in wider climate litigation against businesses.

As PFAS become subject to increased regulation in the United States, European Union and UK, we anticipate more related injury and environmental claims. Despite the first bellwether trial for the Aqueous Film-Forming Foams multidistrict litigation being postponed, we expect to see further injury-related PFAS claims in the United States. In France, activist groups have announced they are preparing to bring an action, and in the UK, two leading claimant firms have announced investigations into possible environmental and injury claims in North Yorkshire.

Microplastics are another significant emerging environmental and public health risk. Businesses involved in manufacturing, packaging, and food production could see heightened scrutiny, with underwriters demanding more rigorous risk disclosures and sustainability practices. Litigation risk, to date largely focused on greenwashing and public nuisance, will grow as public awareness evolves. 

The regulation of, and litigation over, ultra-processed foods (UPFs) is also expected to gain traction in 2026. Mounting evidence linking UPFs to chronic diseases, including obesity, type 2 diabetes and fatty liver disease is intensifying regulatory scrutiny and fuelling litigation, though there will be significant challenges in establishing causation. 

The rise of popular GLP-1 drugs for obesity management also comes with substantial litigation risk. Increased use has sparked a wave of litigation in the United States, alleging manufacturers failed to warn adequately of severe side effects, including gastroparesis, vision loss and suicidal thoughts. 

Technology

For professions, AI has the potential to reduce the tasks juniors deal with, enhance efficiencies and reduce the incidence of human error, which is a significant cause of claims. The advantages are obvious, but they must be balanced against the risks, primarily through safeguards to check outputs. Recent well-publicised cases have demonstrated the legal and regulatory risks inherent in using AI. Professional services firms should be acting now to develop internal policies, issue guidance and train staff. 

Although AI tools have many benefits, they also provide a platform for fraud. We have seen an increase in claim submissions that would historically be considered acceptable evidence of loss, but in fact have been created to generate or inflate a claim. This is not only impacting personal lines, where, for example, AI generated photographs of damage are being created, but also commercial lines, where AI is being used to generate fake invoices and statements. 

As quantum technology develops, we expect cyber insurers to start considering the potential systemic cybersecurity risks associated with the post-quantum era. Organisations are being urged to prepare for this now. The National Cyber Security Centre has published guidance on the timeline for migration to post-quantum cryptography which starts now by identifying information, systems and cryptography at risk and ends in 2035 with complete migration for systems, services and products.

Categorising key risks under these broader themes begins to highlight the expertise needed to understand them better and where they might sit within broader business planning, facilitating a joined-up approach to the interconnectivity of risks and solutions in the year ahead.