Insurance pivotal in risk resilience enhancement: Marsh

“There is No Planet B” author urged the sector to factor in risks of ongoing polycrisis.

Marsh McLennan urges the (re)insurance industry to enhance and diversify its talent pool to better serve clients in a volatile risk environment.

Speaking at the Marsh McLennan Rising Professionals’ Global Forum in London, themed ‘Transforming Chaos into Opportunity,’ CEO John Doyle emphasised the complexity of today's global environment. 

He highlighted, in a press release, the need for agility and resilience in addressing geopolitical, economic, climate, technology, and social risks. 

“Insurance and reinsurance are important means to propelling our economy and society forward. As an industry we have a clear responsibility to develop our future leaders to meet these challenges,” a press release quoted Doyle.

Vicky Carter, Chairman of Global Capital Solutions at Guy Carpenter, noted the increasing uncertainty from geopolitical upheaval, climate transition, cyber threats, and economic fragility. 

She emphasised the industry's pivotal role in enhancing resilience and the need for a skilled workforce to meet these demands. 

“We must inspire the next generation to challenge the status quo and adopt pioneering approaches to risk transfer so the (re)insurance industry continues to transform uncertainty into opportunity,” Carter added.

Wake-up call to polycrisis

Mike Berners-Lee, author of “There is No Planet B”, urged the insurance sector to properly factor in the risks of the ongoing "polycrisis." He emphasised that this approach would help the world recognise the urgency of these issues, which are often dismissed as concerns of scientists.

Berners-Lee, a Professor at Lancaster University and consultant at Small World Consulting, highlighted the crucial role of insurers and brokers in raising awareness about the scale of climate change and its potential impact on people and businesses. 

He described the current situation as a "multi-dimensional polycrisis," stressing that change cannot occur until it is faced. Berners-Lee warned that climate issues are already impacting insurance, citing examples of floods and wildfires. 

He emphasised that the insurance industry is well-placed to help mitigate the climate crisis by incorporating environmental risks into pricing, thereby driving behavioural change. 

He urged young insurance professionals to keep the serious impact of climate change at the forefront of discussions and to challenge any downplaying of the situation.

“You've got a fantastic role to play. It's not often that the business interests of an industry align so closely with what the world needs. Insurance is actually a really critical part of the wake-up system for humanity. Because when people's insurance premiums rise… it is impossible to ignore the stuff that is going on.” he concluded.