A shift toward “slowbalisation” is compelling the re/insurance industry to rethink its strategies, according to the Geneva Association. The global economy’s transition from integration to fragmentation is presenting both challenges and opportunities for insurers.
In its latest report, Insurance in a Fragmented World Economy, the Geneva Association highlights the rise of geoeconomic fragmentation, which is undermining global risk management. Nations are increasingly prioritising security over efficiency, disrupting multilateral efforts on issues like climate change, limiting diversification in both underwriting and investments, and introducing operational hurdles due to differing regulations.
Despite these challenges, the report also identifies promising growth sectors for insurers, including political risk and renewable energy insurance.
The Geneva Association outlines three potential scenarios of fragmentation—mild, moderate, and extreme—and provides strategies for insurers to navigate each situation.
Jad Ariss, managing director of the Geneva Association, stressed the need for insurers to adapt to increasing volatility and limited diversification, while seizing new opportunities in emerging markets. Kai-Uwe Schanz, director of Macro & Geoeconomic Shifts and the report’s author, added that while full-scale deglobalisation is unlikely, insurers must remain agile in response to rising risks such as climate change and cybersecurity.
In light of these developments, insurers are urged to refine their strategies to remain resilient in an evolving global landscape.
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