Geneva Association research analyses effects of ‘slowbalisation’ on insurance industry

Written by Adam Cadle

15/01/2025

A new research report by the Geneva Association, Insurance in a Fragmented World Economy, has explored the implications of reduced globalisation, or ‘slowbalisation’, for re/insurers and strategies for companies to adapt to evolving risks.

The report highlights the disruptive potential of geoeconomic fragmentation on global risk management: it weakens multilateral collaboration on global risks such as climate change; narrows opportunities for risk diversification in both underwriting and investments; and creates operational hurdles from divergent regulations.

The report also identified growth opportunities for re/insurers in areas such as political risk and renewable energy insurance.

The Geneva Association’s report laid out three potential scenarios – mild, moderate and extreme geoeconomic fragmentation – and presents strategies for insurers to strategically respond to each one.

Kai-Uwe Schanz, director macro- and geoeconomic shifts at the Geneva Association and author of the report, said: “Geoeconomic fragmentation signals a shift toward national security and resilience over economic efficiency, disrupting free trade and globally integrated supply chains. While full-scale deglobalisation remains improbable, insurers face rising challenges – from greater exposure to climate and cybersecurity risks to less scope for diversification in underwriting and investment management. Strategic agility will be key to managing volatility and unlocking new opportunities in this evolving environment.”

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