Conclusion: Ready or not?
By any standards, the two years between 2009 and 2011 have been more than usually eventful.
Exceptionally frequent and costly natural disasters, waves of political change across North Africa and the Middle East, and an escalating sovereign debt crisis in Europe have created new economic, political, environmental and social uncertainties.
That the risk priorities of business leaders across the globe have changed is not surprising.
What is more surprising is the general level of confidence that respondents show in their ability to deal with these risks. We keep coming back to the fact that in 48 out of the Index’s risks most respondents believe their preparedness for a particular risk outweighed its sense of priority.
It is interesting that levels of perceived preparedness increase in those areas where insurance is most readily available, such as natural hazards, and shrink in relation to those where it is not.
But neither insurers nor their clients can afford to be complacent about the risks presented by low probability – high impact events.