Emerging Risks to Watch: Geolocation Data, Extreme Heat, and Passive Homes

The insurance industry has long been shaped by its ability to identify, understand, and adapt to new forms of risk. Yet many emerging exposures don’t begin as obvious insurance concerns. Instead, they often arise quietly from technological innovation, shifting consumer behavior, evolving legal frameworks, or changes in the built environment.

Several developments gaining attention today illustrate this dynamic. Increased reliance on geolocation data, the effects of extreme heat on buildings, and the rapid adoption of highly energy-efficient building designs each represent areas where evolving conditions could reshape exposures across multiple lines of business.

Geolocation and Liability

Geolocation data has become a routine feature of modern commerce, powering everything from mobile applications and connected vehicles to targeted advertisements. But as courts and regulators continue to examine the sensitivity of location information, businesses that collect, store, share, or monetize this data may face new questions about privacy obligations and potential liability.

This personal data generally refers to information that identifies or indicates the geographic location of a device, user, or object through technologies such as GPS, IP address tracking, Wi-Fi triangulation, and cellular network signals. Though this has historically been relegated to cellphone usage, geolocation data can now be collected from a wide range of Wi-Fi technologies and Bluetooth-enabled products, from wearable devices and ride-share platforms to robotic lawnmowers.

As a result, a broad range of industries today collect, process, retain, and, in some cases, monetize geolocation information. Retailers and advertising firms, for instance, can now leverage location information to measure foot traffic, analyze consumer behavior, and deliver targeted marketing. Other industries, such as wearable device manufacturers, may use location data to help measure health and physical activity diagnostics, while financial institutions could utilize this data to help detect fraud.

Though no single comprehensive federal privacy law governing the collection and retention of personal data presently exists, a 2026 U.S. Supreme Court ruling could lead to increased judicial sensitivity to the collection and use–or potential abuse–of such data. In Chatrie v. United States, the Supreme Court held that law enforcement’s use of a geofence warrant to obtain a suspect’s personal location data constituted a search under the Fourth Amendment. The decision held that individuals have a reasonable expectation of privacy in their cellphone location records.

As privacy laws, regulatory requirements, and litigation involving geolocation data continue to develop, organizations that collect or use such information may face increased legal, compliance, and risk management considerations, raising the potential for claims, such as cyber, technology errors and omissions, directors and officers, and professional liability exposures.

Heat Risks to Buildings

The record-setting temperatures across much of the U.S. and Europe this summer are just the latest warning sign of a rapidly heating planet. While the human health risks of extreme heat exposure are well documented, high temperatures also have the potential to create specific exposures for multiple lines of business.

According to one study published in the Journal of Engineering (August 2025), curing temperatures can alter concrete’s microstructure, making concrete durability highly sensitive to temperatures that are too hot or too cold. High temperatures can accelerate or inhibit cement hydration, which can then affect several factors that contribute to concrete stability, including pore structure, microcrack development, and permeability.

Steel may face its own heat-related pressures.

A 2025 study published in Buildings, an international, peer-reviewed, open access journal on building science by MDPI, examined how structural steel performed under temperature-humidity cycles and found that humid environments caused corrosion that increased with repeated exposure. The researchers reported that this repeated corrosion damage also substantially reduced the strength, ductility, and fatigue life of steel over time.

If heat is hard on the materials required for building, it’s harder still on the individuals working with them. Construction workers accounted for approximately a third of occupational heat-related deaths between 1992 and 2016–even though they account for around 6% of the overall workforce, according to a 2019 study. Such risks to worker safety may only increase alongside temperatures as heat waves become longer and more frequent across many regions of the U.S.

Less favorable working conditions associated with extreme heat may understandably affect productivity in the construction sector, potentially contributing to insurance implications such as project delays, cost overruns, and heightened safety risks on job sites.

Passive Home, Active Risks?

Rising energy costs and growing interest in lower-carbon living solutions have led many homeowners in recent years to embrace various energy-efficient construction approaches, such as passive housing design. But these designs may have built-in risk for insurers.

A passive house is designed to tightly contain heat during colder months and keep it out during warmer months, while continuously cycling fresh air through the home. The design typically combines a super-insulated envelope with airtight construction methods, incorporates air barriers, and eliminates thermal bridges at junctions while heat recovery ventilation systems supply continuous fresh air.

Proponents suggest that passive building may use up to 90% less heating and cooling energy than conventional construction–a potentially significant incentive for builders and homeowners, considering buildings account for nearly 37% of U.S. energy consumption. That draw is translating into real-world adoption: Phius, a leading certifier of passive houses in the U.S., reported a record 155 design certifications were completed in 2025, with the median project jumping from roughly 6,000-7,000 square feet between 2019 and 2024 to 25,000 square feet–driven in part by a surge in multifamily building projects in states such as New York and Massachusetts.

Yet many of the same features that may contribute to the energy efficiency of passive buildings–such as air tightness and heavy insulation–may also introduce distinct risk considerations. One area frequently discussed is moisture. Due to airtight design, humidity that may have escaped a conventional structure typically must instead be removed mechanically. The American Society of Civil Engineers has identified mold as a potential unintended consequence of certain energy-efficient construction approaches, citing instances where insulation blocked airflow entirely. And while passive design standards generally incorporate hygiene and moisture-control criteria intended to prevent mold, rot, and corrosion, sustained long-term performance may also depend on the proper operation of ventilation and related systems by building inhabitants and property managers.

Overheating has also been identified as a potential concern.

A 2024 review of existing research on passive housing performance found that overheating risks have been reported across numerous climate regions, largely influenced by building characteristics, climate conditions, and occupant behavior. The authors further noted that increasing temperatures and other climate-related factors may only exacerbate those challenges.

While these three risks span different domains, each illustrates how shifting societal, environmental, and technological trends can create new exposures. For insurers, it’s critical to recognize these signals early and adapt strategies to manage potential risks.

Topics Trends