The World Economic Forum has issued its Global Risks Report for 2022, and it is not encouraging. The full report is at https://www.weforum.org/reports/gglobal-risks-report; what follows is taken from the summary of its findings.
- The COVID-19 pandemic has worsened social and environmental risks. Erosion of social cohesion and livelihood crises are the most serious effects. Mental health deterioration is also a short term risk.
- Only 11% of survey respondents expect recovery by 2024; 84% are concerned or worried about the future.
- In the medium term economic risks of debt crises and asset bubble burst will emerge. Longer term, geopolitical and technological risks - including cybersecurity failure - will be concerns. Environmental risks of extreme weather and climate action failure will have short, medium and long term effects.
- Respondents are disappointed with international risk mitigation efforts.
- A divergent recovery threatens long term prosperity. Economic stagnation persists with the global economy expected to be 2.3% smaller by 2024 than it would have been without the pandemic.
- Governments, businesses and societies are facing pressure to transition to net-zero economies. A rapid transition would lead to unemployment and trigger social and political tensions. A slower transition prolongs environmental degradation, structural frailty and global inequality.
- COVID-19 has increased dependency on digital systems. Cybersecurity threats are growing faster than we can prevent or respond to them. Tensions between governments over cyber attacks will increase.
- Economic hardships, climate change and political persecution will force millions to leave their homes, while many countries create higher barriers to entry.
- Increased space activity means a higher risk of collision from space objects. Militarization of space increases global tensions.
Insurance will not solve these problems, but it remains a way to deal with some of their effects. Take time in 2022 to be sure your insurance adequately meets your changing needs and circumstances.