Insurers are feeling better prepared than in 2021 and 2022
Source: Asia Insurance Review | Jun 2023
Insurers are feeling more prepared than they did in 2021 and 2022 on a whole range of issues – but are nervous about geopolitics according to a new global survey by the International Insurance Society (IIS).
The annual IIS Global Priorities survey found that industry executives are feeling more prepared than in the previous two years on a whole range of issues – cyber security, climate change, inflation, competition for talent, data security and expense management.
In addition, some of the major concerns for the industry that were on a high during the previous years — how to cope with the pandemic and how to adapt to a hybrid workplace – have greatly diminished.
The major uncertainty among executives today is geopolitics. What will happen in Ukraine? Will China invade Taiwan? Will the trend toward what the report called ‘backsliding democracies’ continue?
Concerning geopolitical uncertainties, the global respondents said they see these leading them to three profound changes that will play out over many years in how the world economy operates – and, thus, in where the opportunities for insurers will lie.
- A reorientation of global supply chains to insulate economies against future trade disruptions is currently happening.
- Am impetus is on for the green transition, given worries of energy security that Russia president Vladimir Putin’s invasion of Ukraine has sparked.
- Potential risk of global food security.
Insurers have been working hard for years to tackle a whole array of problems and can feel good about being better prepared but still need to stay on alert, especially about cyber security and inflation, in addition to the scary possibilities of today’s geopolitics. A