WEF lists top global risks

In the twelfth edition of the World Economic Forum’s Global Risks Report, the top perceived risks that the world is facing, are among extreme weather, natural disasters, environmental and climate risks as key concerns, highlighting the need for risk transfer solutions.

The report features an assessment by experts on the top global risks in terms of likelihood and potential impact over the coming 10 years. The report has been compiled with the assistance of insurance and reinsurance brokerage and advisor Marsh & McLennan Companies and Zurich Insurance Group.

For 2017 and beyond the threat posed by extreme weather events is now seen as the top risk in terms of likelihood, highlighting the important role that insurance, reinsurance and the insurance-linked securities (ILS) markets can play in helping to increase the world’s ability to withstand and recover from weather impacts.

Similarly, the third most likely risk is said to be natural disaster risks, which again is an area where insurance, reinsurance and ILS market participants have the expertise, ability and capacity to help the world become more resilient.

Climate change related risks feature highly in 2017’s report, with issues such as large-scale involuntary migration, water crises, environmental crises and failure of climate change mitigation and adaptation, all climate linked and risks for which the impacts can be softened with the help of risk transfer and the provision of post-event risk capital.