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Dec 2023

Global Risk Review


New scenario highlights vulnerability of the global economy to extreme weather

A new systemic risk scenario that models the global economic impact of extreme weather events leading to food and water shocks was launched by Lloyd’s. The new scenario model estimates the loss to be $5tn over a five-year period.
 


Insurers prioritise profit over growth

Nearly half of 400 insurance executives participating in a new survey have said their current priorities centre on improving profitability rather than growing their businesses.
 


Shipping industry pays an average $3.2m in ransom attacks

Cyber attacks on shipping industry in 2023 cost the target organisation an average of $550,000, a threefold increase from $182,000 in 2022, according to a new report by law firm HFW and maritime cyber security company CyberOwl.
 


The new generation of risks

While AI tools like ChatGPT are changing how people work and unforeseen business risks arise, the current economic climate is also creating new concerns.
 


Links between global climate events getting stronger

The links between weather phenomena at widely separated locations on Earth, also called climate teleconnections, are increasingly getting stronger globally.
 


Singapore insurers can help the country age well

Singapore is witnessing a rapid rise in its ageing population, with a projected 27% of residents aged 65 and above by 2030. In 2022 residents aged 65 years and above made-up 16.6% of the total resident population in the country.
 


Over 1,000 companies set net-zero targets, but only 4% meet UN standards

Data from Net Zero Tracker shows that over 1000 large companies have set net-zero targets, however, only 4% of these commitments meet best-in-class standards set by the UN.
 


Japan: Poor work performance associated with depressive symptoms

In Japan, companies are taking a wide range of initiatives related to health and productivity management to keep their employees healthy and enhance their work performance.
 


AI not main cause of recent insurance layoffs

In a commentary the credit rating agency AM Best said that “it is too soon to cite AI as the leading cause of the job losses, at least at this nascent stage.” Instead, the layoffs likely fall into “the cyclical, rather than the structural, category.”
 


Ecological threats increase the risk of conflict

The report covers over 3,594 sub-national areas or 99.99% of the world’s population; assessing threats related to food risk, water risk, rapid population growth and natural disasters.
 


Australian companies could face new liability for nature-based risks

Company directors in Australia who fail to account for nature-related risks may be liable under Australian corporations law 2021, according to a new legal opinion document backed by lawyers and environmental groups.
 


Extreme weather tops risks to watch by 2030

A new survey has revealed that for the first time, businesses are more concerned about extreme weather affecting operations in 2030 than they are about cyber attacks.