The global COVID-19 pandemic caused significant decline in demand for many infrastructure assets, as demand for air travel decreased, energy use declined and toll-road revenue diminished. As the economy emerges, owners and operators of infrastructure will need to position themselves effectively for a return to full capacity. This includes addressing trust issues, responding to ... Continue Reading »
macroeconomic
Infrastructure: Heightened Cyber Threats Pose Risks for Owners, Operators
Technological innovation has provided a huge boon in operating efficiency and cost savings in the development and employment of assets. However, this comes at a price as increasingly sophisticated hackers can disrupt business and misuse customer information. Identifying new opportunities for collaboration and reimagining partnerships with stakeholders provide keys to mitigate ... Continue Reading »
Recessions Lead to Lessons in the Surety Market
Learning from recessionary periods over the past 20 years can help surety companies manage risk more effectively and take advantage of opportunities, despite economic uncertainties. Guy Carpenter’s recent briefing, With the Right Tools, Sureties Can Navigate Tough Economic Cycles, shows how recessions have shaped the industry and led to further technology breakthroughs to ... Continue Reading »
Infrastructure: Accelerating Impacts of Climate Change
Climate change is driving a range of physical, transition, and liability risks in infrastructure. Uncertainty surrounding the various paths to decarbonization challenges traditional business models and existing infrastructure investment approaches. Data analytics can guide the use of adaptation measures and the negotiation of innovative risk transfer solutions. Transparent ... Continue Reading »
Built to Last: Infrastructure and Trust in a Changing World
Marsh McLennan Advantage’s latest report, Built to Last: Infrastructure and Trust in a Changing World, examines the role of trust in the infrastructure ecosystem and elaborates on how private infrastructure owners and operators can build and maintain trust with stakeholders. The post-pandemic global economic recovery, the intensifying effects of climate change, and the ... Continue Reading »
With the Right Tools, Sureties Can Navigate Tough Economic Cycles
Guy Carpenter has released a new briefing: With the Right Tools, Sureties Can Navigate Tough Economic Cycles. Surety underwriting can be especially challenging during recessions and recovery periods. Data from the recent recession and others in the past offers insights into how surety writers can continue to achieve profitable growth into the future. Guy Carpenter’s ... Continue Reading »
Three Major Political and Credit Risks Amid Pandemic Recovery
COVID-19’s impacts are too wide-ranging for any one sector to carry the risks alone, and some sort of mechanism with government participation needs to be put in place. As governments continue to implement fiscal and monetary policies in response to COVID-19, country-level economic risks are growing across all regions, according to Marsh Specialty’s Political Risk Map 2021. ... Continue Reading »
Global Risks 2021: Social Fragmentation
As public health gaps, digital inequality, educational disparities and unemployment — risks that result from a complex combination of existing inequalities and the impact of the pandemic — affect vulnerable groups the most, they may further fray social cohesion. Unsurprisingly, “social cohesion erosion” and “livelihood crises” are among the highest-likelihood and highest-impact ... Continue Reading »
More Than 110 Investors Discuss How They Plan for the Unexpected
The COVID-19 pandemic and social unrest in 2020 remind us that the (re)insurance industry’s challenges might change on a year-to-year basis, but they will never end. COVID-19 may represent the vanguard of a series of public health crises arising out of climate change, income inequity, fraying social safety nets, demographic imbalances, resource shortages and increasingly ... Continue Reading »
Outlook for the “Pandemial” Generation: 2021 Global Risks Report
Young adults (ages 15–24) around the world are experiencing their second major global crisis within a decade: (1) they entered youth in the throes of the financial crisis, (2) and are now exiting at the outset of a pandemic not seen in generations. They will face serious challenges to their education, economic prospects and mental health. The outlook for this generation had ... Continue Reading »
