Gari Dhombo | Four emerging risks rewriting the insurance rulebook

The global insurance industry is entering a defining era, one shaped by fast-moving technologies, climate disruptions, Cyber liability risks, Data privacy laws and shifting client expectations. For insurers, brokers, and policyholders alike, the challenge is no longer preparing for the future; it’s responding to risks that are already here.

Emerging risks are changing the rules of engagement. These are not legacy threats like fire or theft. Today’s risk landscape is more complex, less predictable, and requires a fresh approach to underwriting, client engagement, and strategic thinking.

Gari Dhombo, CEO Short Term Insurance at GrowthHouse, outlines four critical risk areas that are reshaping the market, and how insurers can lead in addressing them.

1. Cyber Liability: Redefining Risk in the Digital Economy

As businesses digitise, the insurance sector must evolve beyond traditional models. Cyber risk now ranks among the most urgent concerns for modern enterprises. From ransomware attacks to data privacy violations, the threat is both widespread and deeply consequential.

“Cyber risks force us to rethink protection in a digital world,” says Dhombo. “It’s no longer about just technical defenses, it’s about ethical data stewardship, regulatory compliance, and client education.”

Insurers must lead by adopting robust cybersecurity protocols internally and educating their clients on the scope and limits of cyber cover. Education and awareness are as vital as the policy wording. Equally important is ensuring that the limits of liability that one carries are adequate to cover any potential liability.

2. Climate Risk: The Growing Cost of Environmental Change

Climate events that were once rare are becoming the norm. Floods, wildfires, and extreme weather now frequently test the limits of risk appetite and pricing models.

“Insurers are already pulling out of high-risk zones, including re-pricing as has happened in certain parts of KwaZulu-Natal,” Dhombo notes. “What was once routine underwriting is now highly conditional or off the table entirely.”

To remain viable, insurers must balance environmental responsibility with commercial sustainability. This means investing in advanced climate modelling, advocating for policy reforms, and incentivising clients who embrace green innovation.

3. Infrastructure and Transport Risk: A Growing Exposure

As reliance on road transport increases due to rail underperformance, the insurance industry faces rising claims linked to congestion, cargo losses, and delayed deliveries.

“We’re underwriting risks at a scale that didn’t exist ten years ago,” Dhombo explains. “Overstretched infrastructure is no longer a public-sector issue alone, it’s a critical insurance concern.”

Solutions lie in public-private collaboration. Insurers can play a pivotal role by backing infrastructure upgrades and offering premium relief to clients who implement risk controls such as GPS tracking and driver training.

4. Commoditisation of Insurance: The Value Gap

The push for low premiums has led many consumers to prioritise cost over value, often at the expense of proper coverage. This commoditisation undermines the advisory function of brokers and puts clients at long-term financial risk.

“Clients must approach insurance as if they are not covered, because that mindset encourages vigilance and deeper engagement,” Dhombo advises.

Restoring the value of advice requires transparency, trust-building, and a renewed focus on long-term outcomes over short-term price sensitivity. The future of insurance lies in tailored solutions, not templated ones.

Gari Dhombo believes that the insurance sector must be proactive not reactive in managing the next generation of risk. To succeed, the industry must:

• Invest in predictive analytics to identify and anticipate emerging risks
• Reclaim the advisory role through education and client partnership
• Align with national development goals on infrastructure and sustainability
• Champion policy that supports innovation while managing exposure

Emerging risks are not only technical challenges, they reflect broader economic, environmental, and societal changes. In this evolving landscape, the insurance industry must go beyond underwriting - it must lead.

“Integrity, insight, and innovation will define tomorrow’s market leaders,” says Dhombo. “The insurers who adapt first will shape the future not just survive it.”

*Gari Dhombo, is CEO of Short-Term Insurance at GrowthHouse.