Broker Check

2022 Will Be Another Year of Crises

January 12, 2022

The World Economic Forum has issued its Global Risks Report for 2022, and it is not encouraging. The full report is at; 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.