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This forecast examines the priority drivers of risk which our global partnership consider to have the biggest impact on the global insurance markets in the year ahead, together with new risks arising.
As 2024 drew to a close, we surveyed more than 170 of our global partners to find out what topics, issues and risks they saw as having the biggest impact on their market in the year ahead, and what actions corporates and their insurers should take to ensure business resilience in an ever-evolving risk landscape. Responses came from 17 countries across APAC, EMEA, LATAM, the US and the UK.
Key risk factors
We presented our partners with 10 risks and asked them to identify those which pose the greatest concern in their markets.
Most prominent was the expected impact of technologies in both the adoption of AI and the threat of cyber attacks. Extreme weather events and geopolitical instability made up the top issues, reflecting the global news headlines of recent months.
Regional breakdown
As part of the forecast, we looked at how the key risks may differ for EMEA, LATAM, UK, APAC and North America, including:
- the size of impact
- expected timeframe for peak impact; and
- change in concern since the previous year.
Four dynamics shaping the global risk landscape
Technological, political, environmental and economic dynamics continue to shape the global risk landscape. These are becoming increasingly interconnected, and the risks that sit beneath these key themes continue to evolve.
Geopolitical risk
The geopolitical landscape has always impacted all areas of trade, legislation and regulation. What makes 2025 stand out is the sheer number of substantive changes in policy and government priorities that domestic and international entities will have to navigate.
AI revolution
Global regulation of AI is developing in response to the pace of change. However, that response is uneven, and different regions think differently about how opportunity should be balanced with risk.
Global elections will impact on regional stability, which is likely to have knock-on effects for economies and, in turn, impact insolvency rates and claims flow.
Climate crisis
Governments and corporates are increasingly being held accountable for their actions (or inactions). As well as costly legal actions, the reputational risk is high. This is taking place in conjunction with geopolitical and economic drivers causing mass migration of working communities.
Future of justice
The nature of disputes look different – group actions, ESG litigation, economic volatility driving damage awards – and global justice solutions are adapting to respond.
Understanding the changing regulatory landscape and its impact on corporate exposures is fundamental to an insurers’ success in adapting to the impact of current geopolitical shifts.
Actions and recommendations
When asked ‘How can insurers or corporates best prepare for the impact of these risks / issues?' our global partners were unanimous in their response – the industry and its stakeholders need to work together. Our full report details specific recommendations.
Aviation
Banking and finance
Construction and engineering
Education
Healthcare
Information technology
Insurance and reinsurance
Life sciences
Public sector
Rail
Retail
Shipping and international trade
Sport
Transport and logistics
Travel and tourism
Australia
Belgium
Argentina
Bermuda
Chile
Colombia
Denmark
France
Hong Kong
Ireland
Israel
Mexico
New Zealand
Peru
Singapore
Spain
Sultanate of Oman
United Arab Emirates
United Kingdom
United States