The annual Global Risk Report Executive Opinion Survey conducted by Zurich Insurance has revealed that economic downturns, such as recessions and stagnation, alongside concerns around the increasing frequency of weather events, natural disasters and labour and talent shortages, remain the most pressing concerns for businesses across the Asia-Pacific (APAC) region over the next two years
The survey conducted in partnership with the World Economic Forum (WEF) and Marsh McLennan and released as the WEF Global Risks Report 2025 was released on 15 January 2025. According to Zurich Insurance for the second consecutive year, the possibility of an economic downturn tops the list of risks in most sub-regions, including Oceania, Southeastern Asia, and Southern Asia.
The insurer says, however, in Eastern Asia, labour and talent shortages have overtaken economic concerns as the top risk, reflecting the region’s growing struggles to sustain a skilled workforce. Labour and talent shortages, initially identified as a top five risk last year, have risen in prominence. The issue is particularly acute in Eastern Asia, where the demand for IT and digital skills outpaces supply, points out Zurich.
Zurich Insurance Group chief risk officer APAC Sid Medappa said, “The APAC region continues to face a dynamic risk environment, with uncertainty around the economy leading the agenda. These challenges are compounded by escalating climate risks, socioeconomic disparities, talent shortages and geoeconomic tensions. They outrank the risks around adverse outcomes from the usage of AI technologies and cyber risk, which have been a concern for several years and remain as major risks in the region.”