The latest Future Risks Report from AXA has found that pandemic and infectious diseases have risen quickly to become the foremost concern of risk management experts and the general public this year.
Previously ranked as the eighth most concerning risk in 2019, the global outbreak of COVID-19 has since propelled the risk to the number one spot, overtaking climate change-related risk.
Climate change remains the top risk in Europe but falls to third place in Asia and America, AXA noted.
In North America, the shift in priorities is particularly stark, as the share of experts who consider climate change to be a major risk has fallen from 71% in 2019 to 46% in 2020.
Conducted in partnership with research institute IPSOS and geopolitical analysis consultancy Eurasia Group, AXA’s Future Risk Report surveys 20,000 people to determine the 10 main emerging risks each year.
Cybersecurity risk also continued to increase in prominence this year, ranking third due to the more widespread adoption of technology and the rise in cyberattacks during lockdown.
In particular, the perception of cyber warfare risk has increased and is now seen as the main security threat by 47% of experts compared to 37% last year.
The risk of shutdown of essential services and critical infrastructure following a cyberattack has also increased by 7 percentage points to 51%.
In fourth place is geopolitical risks, following a significant increase in the risk of digital warfare between nations, which experts consider to be the top new security threat.
Finally, AXA reported that the risk of social unrest ranked fifth among the top emerging risks for this year.
“Understanding and anticipating risks is at the heart of the insurance business. AXA’s Future Risks Report is an essential tool to inform and prepare us for major risk trends impacting our society,” said Thomas Buberl, CEO of AXA.
“This seventh edition is of course marked by the exceptional context of the Covid-19 pandemic. It highlights health as a major issue, which we consider a positive shift, as we have considered it underestimated for years,” Buberl continued.
“However, this must not affect the fight against climate change, which remains the most significant and pressing challenge of our time. In line with last year, this year’s edition highlights the growing interconnect ion of risks, calling for collective and concerted solutions to strengthen the resilience of our economies and societies.”
