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Swiss Re and LSE warn AI and supply chains heighten systemic risk
A joint analysis using 91 Fortune 100 filings from 2019 to 2026 found risk connections linked to AI and supply chains rose by 24%, increasing the need to expand ILS capacity.
Swiss Re Institute and the London School of Economics (LSE) have published a joint analysis warning that artificial intelligence and supply chain dependencies are creating new pathways to systemic stress as risks become more interconnected, highlighting insurance linked securities (ILS) as a key capital source.
The research analyzed filings from 91 Fortune 100 companies between 2019 and 2026 and found a 24% increase in the links between risks, with AI and supply chains emerging as key points of connection.
The report also said the next systemic crisis may depend less on the size of the initial shock than on where it occurs and how widely it spreads, noting that reliance on common suppliers, technology platforms, and critical infrastructure can allow disruptions to cascade into other, seemingly unrelated parts of the economy.