Cyber risk, climate change and space risks are among emerging risks facing reinsurers, according to an analysis by Guy Carpenter & Co. L.L.C. the reinsurance intermediary of Marsh & McLennan Cos. Inc.

”Cyber risks are not isolated and are usually connected to other risks,” Guy Carpenter said in the report, “Tomorrow Never Knows.” “Many companies that are exposed to cyber risks are, for example, also exposed in turn to risks to their supply chain.”

The report noted that technological advances have resulted in business being conducted globally instantaneously, which means supply chain failures can significantly affect companies' revenue, credibility and reputation.

“This has raised reinsurers' concerns over the ability of the market to understand the risks that are being underwritten and the viability of offering business interruption/contingent business interruption cover,” according to the report. “Indeed, some reinsurers have taken the view that risk management strategies at the company level need to be improved before coverage can be offered.”

Turning to global warming, the report says that coastal flooding is the “most pervasive hazard” associated with warming and sea levels could rise by as much as 50 centimeters (nearly 20 inches) by the end of the century.

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“Global warming potentially poses a serious threat to reinsurers, with implications on catastrophe risk perception, pricing and modeling assumptions” according to the report. “Investing in solutions that help predict the likely effects of global warming on the location, intensity and cost of weather-related catastrophes will be critical to acquiring a better understanding of climate change risk.”

The report said that two primary risks stem from space — space debris and solar storm activity, with both having the potential to cause “significant disruption” to businesses and communities.

Major solar disturbances could result in significant losses by disrupting the supply of electricity, damaging satellites and disrupting GPS signal, according to the report.

“The cascading impact of this would cripple critical infrastructure, including transportation and fuel supplies, and global supply chains would likely fail. The effect on the reinsurance sector would also likely be profound, affecting several lines of business,” according to the report that is available here.