Recent insights from Canadian Underwriter shed light on a significant challenge within the insurance industry: a growing gap between recognizing risks and being prepared to manage them. According to their article on January 15, 2025, nearly two-thirds (64%) of global insurers identify environmental disruption as their foremost business concern. However, only 26% feel adequately equipped to handle this escalating threat.

Macroeconomic uncertainty closely follows, with 63% of insurers marking it as a major concern. Yet, a mere 21% express confidence in their readiness to address the complexities of economic volatility. This disconnect highlights a broader industry trend where awareness of critical issues does not always translate into actionable preparedness.

In total, only 28% of insurance leaders feel prepared to face future risks, which span a wide spectrum from environmental disasters and economic instability to cyber-attacks, rapid technological advancements, and talent shortages. This level of preparedness slightly trails behind the 29% readiness reported across other industries, underscoring a pressing need for strategic adaptation within the insurance sector.

These findings from Canadian Underwriter emphasize the urgent need for insurers to bridge the gap between risk awareness and proactive risk management. As the landscape of global risks continues to evolve, developing resilient strategies and innovative solutions will be crucial for insurers aiming to safeguard their clients and maintain industry stability.

Jenny is a business insurance broker with Waypoint Insurance. She can be reached at 604-317-6755 or jhansen@waypoint.ca. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

Tags: #Economical Volatility #Environmental Disasters #Economic Instability #Cyber Attacks #Rapid Technological Advancements #Talent Shortages #Risk Management #Jenny Holly Hansen