By: 28 October 2024
New AXA report names top risks in an era of “polycrisis” 

The global insurance giant lists climate change and instability among its top risks 

In its 2024 Future Risks Report, AXA has identified climate change, cybersecurity risks, and geopolitical instability as its top three risks in 2024. 

The report, conducted by Ipsos on behalf of AXA, surveyed more than 3,000 experts and 19,000 members of the public from across 50 countries across the globe. 

The findings suggests that we are living through an “era of polycrisis”: an intricate web of interconnected global threats which each amplify the other. The result is a uniquely complex landscape for insurers, policymakers, and communities. 

What are the top risks? 

Climate change 

For the third consecutive year, climate change tops the list as the most pressing global concern. It’s a top issue for both experts and members of the public, and was the number one priority for all goegraphic areas surveyed.  

With its increasingly visible impacts – from devastating floods and fires to health risks driven by extreme temperatures – climate change is making risk management and prevention a top priority for insurers.  

Geopolitical instability 

From high-profile conflicts in the Middle East and Eastern Europe to political division in otherwise stable economies, geopolitical tensions form another critical layer of the polycrisis.  

AXA’s findings show that these global divisions are reshaping trade, supply chains, and even economic stability, adding volatility to an already fragile landscape.   

Evolving cyber risks 

Cybersecurity remains a major threat as cyber-attacks grow in frequency and sophistication. Adding to this challenge is the rise of artificial intelligence (AI), which, while promising new tools for risk management, also brings fresh threats, particularly around misinformation.  

What risks are down compared to last year? 

In this ugly ‘top 10’ list, there are some interesting movements which reflect wider societal changes that have taken place across the last 12 months. AI and big data, which was completely absent from the 2022 ‘top risks’ list, leaped into fourth place last year and has stubbornly clung onto that position since then. 

Perhaps surprisingly and despite some big headlines this year around mpox and new strains of flu, pandemics and infectious diseases have dropped down to ninth place from fifth place in 2022. 

Climate change, however, has been stubbornly at the top of the list since 2018, apart from in 2020 when it was bumped down to second place by COVID-19. 

The general public expects insurers to safeguard against risk 

According to the report, 91% of experts and 72% of the general public expect insurers to be crucial in safeguarding us all against risk in the future.  

Frédéric de Courtois, AXA group deputy CEO, commented, “It is crucial for insurers to maintain the agility to navigate increasingly dynamic environments and ensure the protection of their operations and their clients.  

“As risks have grown more intricate, the insurance sector needs to cultivate new competencies and take a more comprehensive approach to underwriting and risk management.” 

Image: Canva 
Josie Miller
Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.miller@barkerbrooks.co.uk