We need to build resiliency. Here's how the insurance and asset management industry can lead the way

The World Economic Forum and Bain & Company, in collaboration with an Industry Action Group of 21 insurers and asset managers, propose a framework to address the unsustainable model of governments unilaterally bearing catastrophic risk. The proposal emphasizes closing the global insurance protection gap, which exceeds $1 trillion, and shifting the perception of resiliency investments from short-term costs to long-term value creation. The industry aims to lead by improving risk quantification for companies, collaborating with governments on critical infrastructure vulnerabilities, and standardizing public disclosures regarding risk exposure.

• The current model of managing catastrophic shocks is unsustainable because governments unilaterally bear the risk, while the global insurance protection gap—the difference between insured and economic losses—has grown to over $1 trillion.
• Resiliency investments are frequently viewed as short-term costs rather than drivers of long-term value, and businesses often underestimate their exposure to high-cost perils, relying too heavily on narrow financial hedges and the assumption of government bailouts.
• The proposed 'Societal Risk Compact' involves a proactive approach to catastrophic risk where the insurance industry provides risk-sharing mechanisms (such as catastrophe bonds) and partners with governments to address vulnerabilities in critical systems like power, health care, and food communications.
• To elevate resiliency on corporate and investor agendas, the industry should help standardize public disclosures of risk exposure, inform the development of regulatory frameworks, and use its influence as a holder of over $90 trillion in discretionary assets to prioritize resiliency in capital allocation.

APA

Belelieu, A. (2020). We need to build resiliency. Here's how the insurance and asset management industry can lead the way. World Economic Forum. https://www.weforum.org/stories/global-risks/building-greater-resiliency-insurance-asset-management-industry-risk-framework-action-plan/

Chicago

Belelieu, Andre. We need to build resiliency. Here's how the insurance and asset management industry can lead the way. World Economic Forum, 2020. https://www.weforum.org/stories/global-risks/building-greater-resiliency-insurance-asset-management-industry-risk-framework-action-plan/.

Wikipedia

{{cite press release |last1=Belelieu |first1=Andre |title=We need to build resiliency. Here's how the insurance and asset management industry can lead the way |publisher=World Economic Forum |date=31 August 2020 |url=https://www.weforum.org/stories/global-risks/building-greater-resiliency-insurance-asset-management-industry-risk-framework-action-plan/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{belelieu2020need, author = {Belelieu, Andre}, title = {{We need to build resiliency. Here's how the insurance and asset management industry can lead the way}}, publisher = {World Economic Forum}, year = {2020}, month = aug, url = {https://www.weforum.org/stories/global-risks/building-greater-resiliency-insurance-asset-management-industry-risk-framework-action-plan/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }