HUB 2025 North American Outlook Report Highlights Major Insurance Gaps in Businesses
The recently released HUB 2025 North American Outlook Report has unveiled a startling statistic: 73% of businesses currently operate underinsured against risks that could jeopardize their profits. As organizations grapple with a rapidly changing landscape filled with varying threats, these insights signal the urgent need for a strategic approach towards risk management and insurance.
Hub International Limited, a prominent global insurance brokerage, conducted an Executive Survey to collect these findings. According to Marc Cohen, HUB's President and CEO, organizations need to elevate their preparation strategies for emerging risks. He emphasizes that while business leaders are aware of these threats, many lack the comprehensive support necessary to navigate them effectively. This revelation highlights that many companies still do not view insurance as a pivotal tool for protecting their financial standing despite its potential for risk mitigation.
The survey indicated that inflation, cybersecurity concerns, climate change, and unpredictable geopolitical events are top threats prompting companies to rethink their risk and insurance strategies. In this context, the HUB report outlines several essential takeaways for businesses looking to secure sustainable growth and resilience against potential risks.
1. Recognizing Insurance as a Strategic Asset:
The report notes a slight improvement from 76% in 2023, yet 73% of respondents still recognize being underinsured. This statistic underscores the persistent gap in risk preparedness among companies and encourages them to leverage insurance as a strategic imperative.
2. The Importance of Alternative Risk Transfer Solutions:
In light of rising inflation and related pressures on insurance, 81% of respondents acknowledged significant impacts on their ability to obtain necessary coverage. The report serves as a call to action for organizations to explore alternative risk transfer solutions as attractive adjuncts to traditional insurance products.
3. Utilizing Data for Workforce Vitality:
With 66% of US respondents and 75% from Canada indicating that employee productivity is crucial to their 2025 strategy, there's a growing trend towards utilizing data analytics to enhance workforce performance. Recognizing that employee well-being directly ties to overall company health, firms are encouraged to enhance their benefits strategies with data-driven insights that support high engagement and productivity.
4. Enterprise Risk Management for Greater Resilience:
The survey revealed that 62% of companies have adopted formal enterprise-wide risk management assessments. This statistic illustrates a proactive movement in the corporate world towards not merely responding to risks but anticipating them. Implementing robust risk management strategies can transform disruptions into opportunities for innovation and growth.
In summary, the HUB 2025 North American Outlook Report not only highlights the extensive underinsurance problem prevalent in businesses today but also outlines actionable strategies for enhancing resilience and ensuring long-term stability. As businesses prepare to face the uncertainties ahead, embracing innovative risk management practices and setting a proactive tone within their organizational cultures will be fundamental to thriving in an increasingly volatile environment.
For comprehensive insights, business leaders are encouraged to explore the HUB 2025 North American Outlook Report along with the 15 Industry Outlooks discussed within it. To arm themselves against future uncertainties, it is imperative that they establish progressive ties with insurance partners and robustly leverage data insights into their operational strategies. This will empower them to protect their profitability and pave the way towards a more resilient future.
Hub International Limited, a prominent global insurance brokerage, conducted an Executive Survey to collect these findings. According to Marc Cohen, HUB's President and CEO, organizations need to elevate their preparation strategies for emerging risks. He emphasizes that while business leaders are aware of these threats, many lack the comprehensive support necessary to navigate them effectively. This revelation highlights that many companies still do not view insurance as a pivotal tool for protecting their financial standing despite its potential for risk mitigation.
The survey indicated that inflation, cybersecurity concerns, climate change, and unpredictable geopolitical events are top threats prompting companies to rethink their risk and insurance strategies. In this context, the HUB report outlines several essential takeaways for businesses looking to secure sustainable growth and resilience against potential risks.
1. Recognizing Insurance as a Strategic Asset:
The report notes a slight improvement from 76% in 2023, yet 73% of respondents still recognize being underinsured. This statistic underscores the persistent gap in risk preparedness among companies and encourages them to leverage insurance as a strategic imperative.
2. The Importance of Alternative Risk Transfer Solutions:
In light of rising inflation and related pressures on insurance, 81% of respondents acknowledged significant impacts on their ability to obtain necessary coverage. The report serves as a call to action for organizations to explore alternative risk transfer solutions as attractive adjuncts to traditional insurance products.
3. Utilizing Data for Workforce Vitality:
With 66% of US respondents and 75% from Canada indicating that employee productivity is crucial to their 2025 strategy, there's a growing trend towards utilizing data analytics to enhance workforce performance. Recognizing that employee well-being directly ties to overall company health, firms are encouraged to enhance their benefits strategies with data-driven insights that support high engagement and productivity.
4. Enterprise Risk Management for Greater Resilience:
The survey revealed that 62% of companies have adopted formal enterprise-wide risk management assessments. This statistic illustrates a proactive movement in the corporate world towards not merely responding to risks but anticipating them. Implementing robust risk management strategies can transform disruptions into opportunities for innovation and growth.
In summary, the HUB 2025 North American Outlook Report not only highlights the extensive underinsurance problem prevalent in businesses today but also outlines actionable strategies for enhancing resilience and ensuring long-term stability. As businesses prepare to face the uncertainties ahead, embracing innovative risk management practices and setting a proactive tone within their organizational cultures will be fundamental to thriving in an increasingly volatile environment.
For comprehensive insights, business leaders are encouraged to explore the HUB 2025 North American Outlook Report along with the 15 Industry Outlooks discussed within it. To arm themselves against future uncertainties, it is imperative that they establish progressive ties with insurance partners and robustly leverage data insights into their operational strategies. This will empower them to protect their profitability and pave the way towards a more resilient future.
Topics Financial Services & Investing）
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