A prolonged recession, high unemployment, another outbreak of an infectious disease and protectionism are the biggest worries for risk professionals in the near-long term, according to the World Economic Forum (WEF).
In two reports published in partnership with Marsh & McLennan and Zurich Insurance Group, 350 senior risk professionals expressed their outlook for the global impact of covid-19 over the next 18 months.
The immediate economic implications of the coronavirus pandemic are the biggest concerns, as well as the effects it is going to have on individuals and businesses around the world.
The crisis has highlighted great social inequalities in terms of income, geopolitics, climate, technology and overall personal wellbeing, for which the professionals have called on global governments to act and stop the “avalanche of systemic shocks” this could have around the world.
Shield against uncertainty
But if there is one thing people will need more than ever, it is protection, according to Zurich Middle East chief executive Walter Jopp.
“The industry, and the advisers who distribute our products, have a key role to play in ensuring a strong outcome from this crisis and in educating the community.
“While an economic downturn will lead to a lower disposable household income, it does not diminish the need for life insurance because protecting one’s life and a family’s livelihood is a necessity.
“Covid-19 demonstrates just how unpredictable life can be, and a lower household income means even more uncertainty for those without insurance cover when the primary income earner has a critical illness or passes away,” he added.
A chance to tackle inequality
In the WEF reports, senior risk professionals said there could be an opportunity for a “green recovery” and the emergence of more resilient, “cohesive, inclusive and equal societies”, if governments around the world act now.
“The crisis has devastated lives and livelihoods,” said Saadia Zahidi, managing director at the WEF.
“It has triggered an economic crisis with far-reaching implications and revealed the inadequacies of the past.
“As well as managing the immediate impact of the pandemic, leaders must work with each other and with all sectors of society to tackle emerging known risks and build resilience against the unknown.
“We now have a unique opportunity to use this crisis to do things differently and build back better economies that are more sustainable, resilient and inclusive.”
