Insurance, a growth enabler for resilient businesses in an increasingly fragmented world: Beazley

While a majority of global executives feel the risk environment is high, a significant and growing number are viewing resilience not as a defensive shield, but as a strategic path to growth, Beazley’s ‘Spotlight on Geopolitical & Economic Uncertainty 2025’ report revealed.

The global business landscape is more volatile and unpredictable than ever, driven by escalating geopolitical conflict, economic uncertainty, and technological shifts.

The report, based on a survey of 3,500 global business leaders, underscored that insurance has become an essential enabler of innovation, expansion, and competitive advantage in an increasingly fragmented world.

According to the report, 68% of businesses see geopolitical and economic uncertainty as “a roadblock to growth”. This figure is expected to rise to 83% in July 2025.

Additionally, the report stated that 27% of its respondents noted inflationary pressures as a top risk in 2025 – up from 24% in 2024, and 26% said economic uncertainty was their biggest threat this year, up from 21% in 2024.

While many businesses are adopting a short-term approach due to these converging risks, Beazley’s report highlights that “the real opportunities lie in looking ahead.”

“Firms embedding sharper foresight, faster adaptation and a clear view of where risk meets opportunity are continuing to grow in the testing environment. Agility is no longer just defensive; it is a competitive advantage,” Beazley stated.

The report strongly highlights the increasing reliance on insurance as a tool to absorb uncertainty and facilitate growth, with data showing a rising trust in the value of the sector.

According to the report, trust in insurance has increased or remained the same at 94% in 2025, up from 89% in 2023.

This challenging and volatile environment is driving businesses to take action, particularly concerning global operations and supply chains.

A significant 32% of companies plan to reassess the security of their overseas operations this year, up from 23% last year, signalling a shift from treating security threats as distant possibilities to active risks.

A further 32% of global firms also plan to explore insurance that includes risk and crisis management – up from 24% in 2024.

Insurance, particularly specialty coverage, is also being used to support innovation in high-risk frontiers and new risks, such as the race to secure critical minerals and the development of fusion energy and breakthroughs in AI.

The report revealed that 35% of firms are boosting investment in risk management and loss prevention measures, an increase from 23% in January 2024 to ensure bold innovation is backed by resilience.

“As regulations lag behind innovation, coverage gaps emerge. This creates a sweet spot for specialty, high-risk insurance – helping fast-moving sectors stay protected while exploring unchartered, high-risk frontiers,” analysts noted.

Moreover, businesses are increasingly taking a more strategic approach to risk transfer and prevention, recognising insurance as more than just a protective measure.

.New insurance models – from parametric supply chain covers, embedded credit risk
management and political risk solutions, to developing products for new innovations – are helping businesses invest with greater ease by helping to keep financial risks in check and balance sheets secure, upping financial resilience.

Bethany Greenwood, CEO of Beazley Furlonge Limited and Group Head of Specialty Risks Beazley, said: “Resilience isn’t just about surviving disruption; it is about turning risk into competitive advantage.

“Innovative insurance solutions, including political risk coverage, parametric supply chain protection and crisis management services, are helping businesses act confidently in uncertain conditions.”