Business risks top of the list for over one-third of business leaders
Source: Middle East Insurance Review | Mar 2022
Specialist insurer Beazley’s new report ‘Spotlight on business risks’ shows that business leaders believe they are more resilient as they move into 2022 but 34% still place business risks as their top concern for the year.
The new report says as institutional burnout becomes a real threat, particularly in pandemic exposed sectors such as health, travel, education and hospitality, insurers need to ask how they can support clients with the impact of ‘resilience fatigue’.
Although most organisations have leveraged the pandemic to improve operations from the ground up leading the vast majority (84%) of business leaders to believe they will be more resilient in 2022, high levels of optimism do not, however, mean that business risks have gone away.
Over a third (34%) of business leaders in the US and the UK believe that risks in this grouping – which include supply chain, business interruption, boardroom (director failure), reputation and employer risk (looking after staff through and post-COVID-19) – will be their top concern this year.
Reputation risks still remain a small concern, just 13% say it is their top worry, but the threat continues to rise with ESG reporting - one more reputational issue that businesses need to consider.
Social inflation, already a scourge on casualty markets, could become super-charged by such concerns as pandemic pressures risk encouraging jury members to believe ever more extreme redress measures are warranted. M