Insurers face a shifting landscape of emerging risks in 2026, with social media addiction, space activities, next-generation nuclear energy, sanctions, head office liability, and litigation funding identified as key areas of concern.
Drawing on insights from its international network of partners, Clyde & Co has outlined risks likely to influence underwriting, claims, and regulatory exposure over the next year. The analysis highlights both challenges and opportunities for insurers as technological, social, and geopolitical factors evolve.
“The risks faced by insurers in 2026 and beyond are evolving rapidly and present both challenge and opportunity,” said Neil Beresford, partner and lead of Clyde & Co’s Emerging Risks programme in London.
“Emerging risks such as head office liability and the growing influence of litigation funding are reshaping corporate risk profiles, while technological and geopolitical developments, from next-generation nuclear energy to expanding space activity and tightening global sanctions, are adding further complexity. At the same time, shifting social behaviours, including the rise of social media addiction, are creating more liability risks for insurers linked to mental health.”
The firm highlights that social media platforms, increasingly integrated with AI features, are generating liability claims relating to mental health impacts. Katelin O’Rourke Gorman, partner in New York, noted rising lawsuits in the US alleging platforms encourage addictive behaviour, with potential global implications. “For insurers, this trend highlights the need to reassess product liability exposure and adopt proactive measures from revising policy wording to tightening risk selection,” she said.
Space-related risks are also gaining prominence. Kevin Sutherland, partner and global head of aviation in San Francisco, said the expansion of commercial space activity and satellite networks presents rare but potentially catastrophic risks. Insurers face challenges including orbital debris, cyber threats, and uncertain legal frameworks.
Next-generation nuclear energy is identified as a complex emerging risk, with Corey Greenwald, partner in New York, highlighting the importance of specialised coverage and cyber resilience to support sector growth. Similarly, sanctions risks are increasing in complexity, particularly in marine and energy sectors, according to Paul Collier, partner in Singapore.
Globalisation is contributing to head office liability concerns, with Daniel Le Roux, partner in Johannesburg, citing claims targeting parent companies for subsidiary actions overseas. Meanwhile, rapid growth in litigation funding poses regulatory and reputational risks for insurers, noted Paul Wainwright, partner in Manchester.
