Executives rank key risks in New Zealand and other G20 nations

Executives rank key risks in New Zealand and other G20 nations | Insurance Business New Zealand

Insurance News

Executives rank key risks in New Zealand and other G20 nations

Insurance giant emphasises key role of insurers

Insurance News

By
Roxanne Libatique

Zurich Financial Services Australia (Zurich) has revealed what executives deem significant risks in Australia, New Zealand, and other G20 nations in 2023.

The data, released by Zurich from the World Economic Forum (WEF) and was based on an Executive Opinion Survey conducted in collaboration with Zurich, gathered the insights of over 11,000 business leaders from across 110 countries on the key risks they think pose a threat to their country over the next two years.

Key results

The new data ranked economic downturn (e.g., recession and stagnation) as the top risk in nine of 10 regions and in 13 of the G20 countries, including Australia and New Zealand;

Inflation was among the top three risks in all regions, including in Australia and New Zealand, where it ranked second. Meanwhile, energy supply shortages were among the top five risks in all regions, including in Australia and New Zealand, where it ranked third.

Lastly, extreme weather events – including storms and floods – are among the top five risks in three regions (they ranked fourth in Australia and New Zealand), making it the only top environmental risk in the regional rankings.

Zurich welcomes new data

Zurich has welcomed the new data from the WEF, highlighting insurers’ role in protecting people from various risks.

“Our role as an insurer is to understand and help protect individuals and businesses from the increasingly complex risk landscape. Gaining insights into the risk perceptions of leaders from across the globe is now more important than ever as we collectively seek to build resilience to these threats,” said Zurich Australia and New Zealand CEO Justin Delaney. “As with previous years, many of the risks forecast in the last survey have already come to fruition. Considering the top ranked risks in this year’s survey, it is unsurprising to see economic threats causing the most concern. Likewise, energy supply shortages and extreme weather are both key and intertwined risks for Australia in the coming years.

“In a broader context, the findings highlight strikingly common concerns between both advanced economies and emerging markets. This year’s survey highlights how, even before the current conflict in the Middle East, increasingly interconnected economic and societal risks were perceived as the biggest concerns across the G20 with a backdrop of escalating global political tensions and persistent inflation in many major economies.”