Social and environmental risks have supplanted economic ones as issues of greatest concern among respondents to the Global Risks Perception Survey. The survey was completed by almost 750 members of the World Economic Forum’s global multistakeholder community and the results analyzed in the World Economic Forum 2017 Global Risks Report, which was published by the World Economic Forum with support from Marsh & McLennan Companies and other partners.
Posts Tagged ‘political risk’
According to the 2017 Association for Financial Professionals Risk Survey, supported by Marsh & McLennan Companies, 49 percent of finance professionals believe their organizations are exposed to greater earnings uncertainty than they were three years ago.
In addition, 52 percent of Treasury & Finance functions are considering the impact on their organization’s growth expectations due to a geopolitical event. That’s no surprise given that 46 percent say their C-suite and board were concerned about geopolitical risk in 2016.
The Global Risks Report 2017, produced by the World Economic Forum with support from Marsh & McLennan Companies and other partners, was published this week. Now in its twelfth edition, the report provides insights into the key global risks facing businesses as well as the collective view of risk experts in all sectors as to the most significant threats to global prosperity over the next decade. The Global Risks Report 2017 will inform discussions at the World Economic Forum’s annual meeting next week in Davos, Switzerland.
Here we review GC Capital Ideas posts on how catastrophic exposures are adversely impacting public entities.
Many governments today are straining under public debt and many of the most catastrophically exposed governments are in the worst financial position. This is particularly true for countries exposed to the perils of flood, tropical cyclone and earthquake. Compounding this situation are demographic and economic trends that are adding additional pressure on already stressed balance sheets, both in emerging and developed economies.
Marsh and McLennan Companies, in Collaboration With the World Economic Forum, Publish the 11th Annual Global Risks Report
Disruptive shifts in technology, geopolitics, societal expectations, and economic patterns are creating instabilities that are directly impacting events in the world today. The World Economic Forum’s eleventh Global Risks Report highlights the issues that will exacerbate volatility and uncertainty over the next decade - while also presenting opportunities for governments and businesses to build resilience and deliver sustainable growth.
The dramatic rise in political instability and civil unrest across the globe, including uprisings in the Middle East and protests in Greece and Spain, has triggered a significant shift in the nature of terrorism risk and has highlighted the need for tailored terrorism and political violence protection, according to “Tensions Building: the Changing Nature of Terrorism Risk and Coverage,” by Guy Carpenter.
David Flandro, Global Head of Business Intelligence, Julian Alovisi, Assistant Vice President, Lucy Dalimonte, Senior Vice President, Ellen Rieder, Managing Director and Emma Karhan, Senior Vice President
The unrest around the world outlined earlier in the report has begun to impact the terror (re)insurance market, not only with regard to supply and demand but also in terms of how risks and coverages are defined. Although there is an abundance of capacity in the market due to the absence of a recent major terrorism loss (resulting in a stable to softening treaty terrorism market), civil unrest and/or riot coverages in some international terrorism programs are impacting several carriers. Indeed, the dramatic increase in global unrest has caused an increased frequency of localized or territory-specific losses in the facultative reinsurance market.
The dramatic rise in political instability and civil unrest across the globe, including uprisings in the Middle East and protests in Greece and Spain, has triggered a significant shift in the nature of terrorism risk and has highlighted the need for tailored terrorism and political violence protection, according to a new report on global terrorism and the terror reinsurance market, “Tensions Building: the Changing Nature of Terrorism Risk and Coverage,” released by Guy Carpenter.
In the credit and bond primary market, rates are flat, but these are not rate-driven classes. In political risk and especially structured credit, rates are under considerable upwards pressure for obvious reasons. The outlook for 2012 is turbulent, given the prevailing macroeconomic uncertainty and instability around the world. Loss ratios are quite likely to increase.