We live in a world where risks are fast-moving and interconnected. Risks like climate change, cyber and geopolitical threats affect us all as individuals, as part of companies large or small, and the communities in which we live.
We understand the need to build up resilience to these risks, and to as yet unknown risks that might be around the corner.
This week AXA published the 10th AXA Future Risks Report. The report highlights the risks that experts and the general public consider to be the biggest future threats. Perhaps unsurprisingly, climate, cyber and geopolitical risks top the list of concerns. Interestingly, too, the risk experts surveyed identified Artificial Intelligence (AI) as the fourth most highly ranked risk.
Foreword from Thomas Buberl, CEO of AXA
I’m very proud to introduce the 10th edition of the AXA Future Risks Report. Over the years, the unique overview of tomorrow’s major risks provided by our annual survey has established this report as an essential reference point for our industry and opinion leaders. We conduct this survey because risks are central to our business. Anticipating these risks helps us to guard against them and prepare for them more effectively, so that the future does not pose a risk to us.
For a decade, the report has tracked the changing perceptions of experts and the general public regarding the vulnerabilities to which our societies are exposed. This year, more than ever, our survey results map out the contours of a world in “polycrisis” where risks are now interconnected. Digital transformation, global warming and geopolitical fractures are combining to create a permanent process of mutation in our economies and societies. Against this background, the concept of risk takes on a new dimension.
This year’s report offers us a number of lessons. Having topped the experts’ rankings since 2015,1 climate change becomes for the first time the public’s top risk across all geographies surveyed. Extreme weather events, droughts, fires, biodiversity loss... the increasingly tangible aspects of climate change underline the urgent need for concrete action. AXA decided at a very early stage to take a frontline role in this battle.
A top-three threat since 2018, cyber risks return to second place. A direct consequence of the digital revolution and its impact on our lifestyles, it has also become a credible “weapon of war” on the geopolitical chessboard, and it remains closely linked to geopolitical risks, in third place this year.
This year’s report is also marked by a meteoric rise in risks linked to artificial intelligence (AI) and big data. They jump from 14th to 4th in the experts’ rankings – hardly surprising, given the spotlight on generative AI and ChatGPT. However, AI risks remain low in the public’s rankings, particularly in Europe, which could also be seen as a vector of progress.
Faced with these hybrid threats and the scale of the challenges involved, and despite a general perception of increasing vulnerability, I detect a renewed sense of hope and confidence: 85% of experts and 78% of the public believe “a collective form of progress benefiting individuals, economies and society is still within reach”. This progress depends on risk prevention, heightened awareness, and open dialogue between institutions, political decision makers and private sector players. Only consensus will enable us to act collectively and effectively.
I am convinced that the future should not be a risk. This conviction, which was the central message of our latest brand campaign, will be at the heart of our next strategic plan. As a global insurer, our ambition is to protect as many people as possible against risks, to benefit individuals, economies and societal progress.
1. Dislodged only in 2020 by the risk of pandemic
The future shouldn’t in itself be a risk. How we address the risks that face us now and in the future, and how we learn from our knowledge and expertise, will be vital in building resilience.
Projects like this report and the wealth of knowledge and expertise that ten years of having conducted it can give us are invaluable in our mission to move beyond the traditional system of risk transfer and towards a partnership where our risk consulting expertise, breadth of knowledge and data insights can boost our clients’ resilience to even the most challenging and fast-moving of risks.
Click to find out more about the key findings and to read the report in full.
