Beazley’s latest research reveals divergence in global opinions on environmental risk and resilience New York, NY (Apr.27, 2023) – Beazley, the leading specialist insurer, has published the latest edition of its Risk & Resilience series, Spotlight On: Environmental Risk.Based on a survey of 2,000 senior business leaders across the US, UK, Canada and Singapore, the data shows that US business leaders are more concerned about climate change than their global counterparts.

More than one in three (34%) senior business leaders in the US now identify climate change as the biggest risk they will face in 12 months’ time, while in the UK, Canada and Singapore, current and short-term concerns about energy transition are deflecting focus away from climate change as the environmental issue of most concern.The report posits that the long-term threat of climate change in the US is unsurprising given the myriad increasingly severe impacts from climate change which are being felt across the country.Over the past six months alone, the US has been exposed to the full gamut of catastrophic events, from hurricanes and flood to wildfires and convective storms.

However, recognition of the threat has left more businesses feeling exposed, with 29% now saying they feel unprepared for the risks posed by climate change.Global opinion diverges for today Globally, energy transition risk is the number one environmental concern among business leaders, jumping from 8% in 2021 to 22% today.The US, with its greater onshore energy resources, stands alone as the only market in which energy transition is not the principal environmental concern today.

Worry peaks for the UK, with 27% of boardroom leaders identifying the energy transition as the number one risk, similar to counterparts in Canada and Singapore, where it is the primary area of concern for 22% and 21% of leaders, respectively.Yet this trend does not extend to the US, where fewer than one in five (18%) business leaders identify energy transition as the biggest environmental risk.But tomorrow there is unity on the climate change threat Across the globe, business leaders’ thinking becomes more aligned as we look forward, with just 9% predicting that energy transition will be the top risk in 12 months’ time; instead, climate change leaps up as the biggest environmental risk business leaders believe they will face.

Though the US indicates more immediate concerns around climate change, the reality of the long-term threat that it poses is rising to the top of boardroom agendas globally, with more than one in four (28%) global business leaders saying it will be the biggest risk they will face in 2024.This number is even more pronounced in the US, where it rises to more than one in three (34%).Unprepared to deal with climate risk Worryingly, a lack of business preparedness for climate-related risks has led to a quarter of global business (and 29% in the US specifically) feeling unprepared to face the impacts of climate change.

Small and medium sized businesses are feeling most exposed, with 28% of firms that generate under £100mn revenue noting they are not prepared, versus 21% of businesses with revenue over £100mn.Just as environmental risks are climbing up the agenda, business confidence in its resilience is dropping fast.Clearly, the impact on energy resources of the war over the last 12 months has had a significant impact on thinking and perception of resilience globally.

Bob Quane, Chief Underwriting Officer at Beazley, said: “With increasingly severe impacts from climate change subjecting US regions to so many natural catastrophes, it is perhaps unsurprising that the US is more acutely aware of the long-term threat of climate change than anywhere else.As regulators and consumers become more aware of the impact of severe weather patterns, the list of ‘unknown’ liabilities is growing.Businesses may face environmental liability claims based on historic actions which have consequences that would have been incredibly difficult to predict at the time.

The current low levels of resilience that many business leaders feel in the face of climate change, coupled with the reality of the effects we have seen over the past 12 months, mean that a change of mindset is urgently needed.” About the Risk & Resilience research During the 3rd of January and 13th of February 2023, we commissioned research company Opinion Matters to survey the opinions of over 2,000 business leaders and insurance buyers of businesses based in the UK, US, Canada and Singapore with international operations.Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.Survey participants were asked about their views on insurers and insurance, as well as on four categories of risk: Environmental – including climate change and associated catastrophic risks, environmental damage, greenhouse gas emission, pandemic, food insecurity and energy transition risk.

Cyber & Technology – including the threat of disruption, failure to keep pace with changing technology, cyber risk and IP risk.Business – including supply chain instability, business interruption, boardroom risk, crime, reputational and employer risk and failure to comply with ESG regulations and reporting requirements.Geopolitical – including strikes and civil disruption, changes in legislation and regulation, economic uncertainty, inflation and war & terror.

Of the firms surveyed, there was an equal split of respondents across company sizes of: $250,000 – $1 million, $1,000,001 – $10 million, $10,000,001 – $100 million, $100,000,001 – $1 billion, more than $1 billion.With a minimum of 50 respondents per country per industry sector, respondents represented businesses operating in: Healthcare & Life Sciences Manufacturing, Retail, Wholesale and Food & Beverage Commercial Property, Real Estate and Construction Hospitality, Entertainment and Leisure (including Gaming) Financial Institutions and Professional Services Energy and Utilities (including Mining), Marine and Warehousing Public Sector and Education Tech, Media and Telecoms Transportation, Logistics, Cargo and Aviation About Beazley Beazley plc (BEZ.L) is the parent company of specialist insurance businesses with operations in Europe, United States, Canada, Latin America and Asia.Beazley manages seven Lloyd’s syndicates and, in 2022, underwrote gross premiums worldwide of $5,268.7m.

All Lloyd’s syndicates are rated ‘A’ by A.M.Best.Beazley’s underwriters in the United States focus on writing a range of specialist insurance products.

In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an A.M.Best A rated carrier licensed in all 50 states.In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.

Beazley’s European insurance company, Beazley Insurance dac, is regulated by the Central Bank of Ireland and is A rated by A.M.Best and A+ by Fitch.Beazley is a market leader in many of its chosen lines, which include professional indemnity, cyber, property, marine, reinsurance, accident and life, and political risks and contingency business.

For more information, please visit www.beazley.com.Tags: Beazley, resilience, social responsibility, sustainability, United States (USA)