Climate change, technology and geopolitical instability are the main future risks: AXA

Climate change, technology and geopolitical instability are the three biggest risks in the next five to 10 years, according to a report compiled by French insurer AXA.

The AXA & Eurasia Group Future Risks Report 2019 says risks are increasingly interconnected, meaning that protective measures must be considered through a global, interdisciplinary, and multi-stakeholder approach.

“Anticipating and understanding risks is precisely what insurance is all about,” said Thomas Buberl, AXA’s chief executive. “With societies undergoing profound and accelerated changes, our mission has never been so crucial. These complex trends prompt us to look into a world of uncertainty in which events are increasingly hard to anticipate.”

He continued: “In a broader sense, there is growing concern about the consequences of human actions, from unsustainable growth damaging the environment, to new technologies threatening our private lives and the rise of populist politics challenging our ability to shape an inclusive destiny. In short, part of what has allowed us to live a better life in the past has turned into challenges for the future.”

Climate change emerged as the top risk of the survey, reflecting the growing concern for and awareness that environmental risks have far-reaching consequences on society. AXA’s experts stressed that climate change, biodiversity loss, and environmental degradation are interlinked and self-reinforcing. Demographic trends will further increase the pressure on natural resources and contribute to environmental degradation.

For the 2019 edition of the report, AXA formed a partnership with Eurasia Group, a US-based geopolitical advisory and consultancy services firm. More than 1,700 risk experts from over 50 countries contributed to the survey.

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