World Economic Forum’s 2025 Report Offers Insurance Agents a Path Forward in Today’s Tough Times

• By: Nancy Germond
• November 11, 2025

There is little denying that we are in an era of escalating uncertainties. As a long-term risk manager, each year I read the Global Risks Report, which offers a comprehensive assessment of the most immediate challenges shaping our world now and in the coming years.  

Developed by the World Economic Forum, this report draws conclusions from over 900 global experts who both identify and rank the critical risks across geopolitical, environmental, societal, economic and technological realms. From the immediate threats of state-based armed conflict and life-threatening weather events to the longer-term consequences of climate change, biodiversity loss, and technological advancements, the report underscores the interrelated nature of these risks and their potential to disrupt global stability.  

Based on input and insights from over 900 global experts, this year’s 2025 report identifies key risks across the following three periods of time. 

1. Immediate (2025) 

2. Short-term (to 2027), and  

3. Long-term (to 2035) 

My article evaluates the key findings of the report, offering actionable insights for insurance agency leadership, including insurance agents, brokers and carrier leadership. We must prepare our organizations and our clients to proactively anticipate these challenges and build resilience in an increasingly volatile landscape. 

What Does the 2025 Global Risk Report Predict? 

The 2025 Global Risks Report, developed by the World Economic Forum, emphasizes a ruptured global landscape marked by escalating geopolitical, environmental, societal and certainly, technological challenges. In a tone similar to the 2024 Global Risk Report, this year’s preface states this: “The ensuing risks are becoming more complex and urgent, and accentuating a paradigm shift in the world order characterized by greater instability, polarizing narratives, eroding trust and insecurity. Moreover, this is occurring against a background where today’s governance frameworks seem ill-equipped for addressing both known and emergent global risks or countering the fragility that those risks generate.”  

Let’s first review some of the report’s conclusions.  

Top Findings for 2025 

These were the top six risks “…most likely to present a material crisis on a global scale in 2025.” 

1. State-Based Armed Conflict: Ranked as the top risk for 2025, almost one-quarter (23%) of the responding experts identify this risk as the most likely to cause a global crisis. These risks included “proxy wars, civil wars, coups, and terrorism” as the top risk in 2025. This reflects the ongoing geopolitical tensions, including conflicts in Ukraine, the Middle East and Sudan.  

2. Extreme Weather Events: Climate-related disasters, such as wildfires and floods, are the second most pressing risk, exacerbated by climate change, according to 14% of respondents who rated this as the second most likely risk.  

3. Geoeconomic Confrontation: Trade wars, sanctions, and economic protectionism rank third, highlighting the fragility of global economic relations. Of the survey respondents, 8% found this challenge to be the third-most prevalent risk.  

4. Misinformation and Disinformation: The spread of false information, amplified by generative artificial intelligence (AI), ranks fourth, undermining trust and stability. Of the respondents, 7% found misinformation and disinformation to be the fourth most prevalent risk.  

5. Societal Polarization: Deepening ideological and cultural divisions complete the top five risks, threatening social cohesion, income inequality and policymaking. Societal polarization was the fifth most significant risk in 2025, including threats like involuntary migration, societal polarization and the “erosion of human rights and/or civic freedoms.” 

6. Economic Downturn: Six percent of respondents felt that an economic downturn would present a material crisis globally in 2025. While this risk is lower on the list than it was last year, it is still a concern to respondents.  

Short-Term Outlook (2027) 

In the short term, disinformation, warfare and extreme weather dominate the list.  

• Misinformation and Disinformation tactics are expected to dominate, heightened by AI-driven content manipulation. 

• Cyber Espionage and Warfare increase in importance, driven by technological advancements and geopolitical rivalries.  

• Environmental risks, including Extreme Weather Events, remain critical, while societal polarization and state-based conflicts persist. 

Long-Term Outlook (2035) 

Environmental risks dominate the long-term horizon.  

• Extreme Weather Events: These threats respondents expect to increase in both frequency and intensity. 

• Biodiversity Loss and Ecosystem Collapse: Ranked second, reflecting the failure to address environmental degradation. 

• Critical Change to Earth Systems: Long-term climate tipping points pose existential threats. 

• Natural Resource Shortages: Water and food scarcity emerge as critical challenges. 

• Pollution: Air, water and soil contamination continue to impact health and ecosystems. 

Broader Trends and Challenges 

• Geopolitical Fragmentation: 64% of respondents anticipate a multipolar world order marked by competition among major powers, undermining multilateral cooperation. 

• Economic Risks: Inflation, labor shortages, and economic downturns weigh heavily on global stability. 

• Technological Risks: Advances in AI and biotech present both opportunities and risks, including ethical dilemmas and potential misuse. 

Call to Action 

The report emphasizes the need for proactive risk management and resilience-building. The report urges decision-makers to do the following to prepare their organizations for these challenges.  

• Strengthen multilateral cooperation to address shared challenges. According to the report, “Key countries appear to be running inward, focusing on mounting domestic economic or societal concerns, just when they should be seeking to strengthen multilateral ties to confront shared challenges.  

• Invest in sustainable and inclusive economic policies. This includes recommendations to emphasize domestic policies that focus on strengthening investments in education, health and infrastructure.  

• Enhance public awareness and education to combat misinformation. According to one reference in the report, “…developers and organizations must implement robust safeguards, transparency measures and accountability frameworks.” This includes developing ethical frameworks for swiftly developing emergent technologies. 

The 2025 Global Risks Report paints a difficult risk portrait facing organizations and their leadership. As we know, leaders grapple with immediate crises while still attempting to prepare for long-term challenges that demand urgent and coordinated action. From geopolitical tensions and climate-related disasters to the rapid evolution of technology and societal polarization, the interconnected nature of these risks highlights the need for proactive risk management and resilience-building.  

For decision-makers, including insurance agents and business leaders, the report is a critical reminder that every choice made today shapes both our organization’s future and the future of our employees. By embracing innovative solutions, fostering collaboration, and prioritizing sustainability, stakeholders can not only mitigate vulnerabilities but also uncover opportunities to drive positive change. In a world fraught with uncertainty, resilience is not just a strategy—it is a necessity. 

The 2025 Global Risks Report underscores the interconnected nature of global risks and the urgent need for collective action to navigate an increasingly complex and volatile world. 

Key Insights for Insurance Agents and Risk Managers 

• Anticipate the Increasing Cost of Extreme Weather Events 
  Extreme weather events, such as hurricanes, floods, heat waves and wildfires, are becoming more frequent and severe, with damage exceeding $2 trillion globally over the past decade. Insurance agents should work closely with clients to evaluate their property and business income coverages, ensuring they accounts for climate-related risks and increasing construction costs and time delays.  We’ve all watched as the delays in construction and supply chain created an inflationary spiral over the past years, increasing costs and time out of home or office after even a smaller loss. For industries like real estate, manufacturing and agriculture, consider learning more about parametric insurance solutions that provide payouts based on predefined weather triggers, enabling faster recovery. 

• Cybersecurity and Data Breaches 
  With cyber espionage and warfare ranking as a top risk, the rise of AI-driven cyberattacks poses a significant threat to businesses. Offer tailored cyber liability policies that cover data breaches, ransomware attacks, and business interruption caused by cyber incidents.  Additionally, educate clients on the importance of cybersecurity measures, such as multi-factor authentication, regular penetration testing, and employee training to reduce vulnerabilities. If you are not an expert in cyber coverage and with so many insurers offering the coverage with proprietary forms, work with an experienced, trusted wholesaler to help you recommend appropriate coverage for your insured. 

• Supply Chain Vulnerabilities 
  Disruptions to critical supply chains, whether due to geopolitical tensions or natural disasters, can have cascading effects on businesses. Recommend contingent business interruption insurance to cover losses from supply chain disruptions. Help clients map their supply chains to identify weak points and encourage diversification of suppliers and routes to mitigate risks. 

• Geopolitical Risks and Trade Disruptions 
  Geoeconomic confrontations, including sanctions, tariffs, and trade wars, can disrupt global operations and increase costs. Political risk insurance can protect clients against losses from government actions, such as expropriation or currency inconvertibility. Encourage clients to monitor geopolitical developments and consider diversifying their operations across multiple regions to reduce exposure to localized risks. 

• Environmental Liability 
  As regulatory scrutiny on environmental practices intensifies, businesses in sectors like manufacturing, energy, and agriculture face heightened risks of fines, lawsuits, and reputational damage. Environmental liability insurance can cover cleanup costs, legal fees, and damages resulting from pollution incidents. Work with clients to implement proactive environmental risk management strategies, such as regular audits and compliance with evolving regulations. 

Tips for Insurance Agents 

• Be sure your agency has a current disaster plan in place. The Big “I”s’ Agents Council for Technology recently updated a disaster plan for our agents, completed by a number of emergency response experts. It is available to members at this link. Additionally, encourage your employees to update their own family disaster plan. This link, available at ready.gov, can help your employees prepare for a disaster.  

• Proactive Risk Assessments 
  If qualified, conduct in-depth risk assessments for clients, focusing on emerging threats like climate change, cyber risks and geopolitical instability. Use these assessments to identify coverage gaps and recommend appropriate policies. For example, a manufacturing client might need additional coverage for supply chain disruptions caused by extreme weather. 

• Customized Coverage Solutions 
  Tailor insurance solutions to address industry-specific risks. For instance, offer product recall insurance to manufacturers, D&O liability coverage to companies navigating regulatory challenges, or specialized policies for renewable energy projects. Customization not only meets client needs but also strengthens long-term relationships. 

• Promote Resilience Planning 
  Encourage clients to invest in resilience measures, such as flood defenses, renewable energy sources, and robust business continuity plans. Highlight how these investments can reduce claims, improve insurability and potentially lower premiums. For example, a client with a comprehensive disaster recovery plan may qualify for better terms on business income coverage. 

• Leverage Data and Analytics 
  Use predictive analytics to identify trends and help clients understand their risk exposure. For example, data on regional weather patterns can inform property insurance pricing, while cyber risk assessments can guide coverage for digital assets. Analytics can also support underwriting decisions and help clients make informed risk management choices. 

• Educate on Emerging Risks 
  Host workshops, webinars, or consultations to educate clients on emerging risks like AI misuse, misinformation and societal polarization. Provide solid advice on how these risks could impact their operations and what insurance solutions are available to mitigate them. 

• Collaborate on ESG Initiatives 
  Environmental, social and governance (ESG) factors are increasingly important to businesses and investors. Help clients align their risk management strategies with ESG goals, such as reducing carbon footprints or improving workplace diversity. Highlight how ESG alignment can enhance their reputation and reduce long-term risks. 

• Focus on Multinational Clients 
  For clients with global operations, emphasize the importance of global insurance programs that provide consistent coverage across jurisdictions while addressing local regulatory requirements. This is particularly important for industries like technology, transportation and energy, which often operate across multiple countries. 

• Should Your Commercial Clients Consider Active Assailant Coverage? 
  In September 2025, Charlie Kirk, a podcaster and political activist, was shot at a speaking event on a college campus in Utah. While many of your commercial clients think, “It can never happen here,” often interpersonal or inter-employee violence precipitates tragedy. As stated in this 2022 article in the Big ‘I’ Magazine, I believe agents should always offer every commercial client active assailant coverage. It can fill many gaps not covered by a commercial general liability or businessowners policy.  

Value-Added Services 

More agents today offer additional support services to their clients. Here are some of the areas where you can help your clients prepare for today’s challenges. One caveat, however—Partner with an experienced provider rather than trying to offer these services yourself if you do not have the expertise. Offering advice can increase your standard of care and can lead you to an errors & omissions (E&O) claim, a coverage issue with your E&O carrier, or other problems.  

When I was a governmental risk manager, my requests for proposals always included how much expert support the broker would provide as part of their broker package. On many occasions, my broker helped with the following.  

• Risk Engineering Support 
  Offer risk engineering services to help clients identify vulnerabilities and implement preventive measures. For example, a risk engineer could assess a factory’s fire safety systems or recommend upgrades to protect against flooding.  

• Claims Advocacy 
  Provide strong claims support to ensure clients recover quickly from losses, particularly in complex claims scenarios like cyberattacks or natural disasters. Act as an advocate to streamline the claims process and secure fair settlements. This Insurance Illustrated article provides some tips for agents who provide, or are considering providing, insurance claims advocacy. 

• Scenario Planning 
  Help clients model worst-case scenarios, such as prolonged supply chain disruptions or geopolitical conflicts, and develop mitigation strategies. For example, a retailer might plan for alternative sourcing options in case of trade restrictions. 

• Property Values and Business Income Limits 
  In my opinion, your agency picked one step to take this year to avoid E&O claims and best support your clients, it would be to ensure that you bombard your customers with information on property valuation and business income limits.  

By expanding your expertise in these areas and offering tailored and proactive solutions, you position your agency and team as trusted advisors. This not only strengthens client relationships but also ensures your clients are better prepared to navigate the complex and evolving risk landscape outlined in the 2025 Global Risks Report.