As risks become more interconnected and unpredictable, global businesses are rapidly redefining how they approach risk, elevating insurance and risk management from a back-office function to a central pillar of corporate strategy.
That’s according to Olga Collins (pictured), chief executive of Worldwide Broker Network (WBN). New research commissioned by WBN showed nearly half of senior executives ranked risk management as the second most important driver of corporate resilience, just behind innovation. Eighty-seven per cent (87%) expect insurance to become even more strategic in the next three years.
The findings, drawn from a survey of more than 1,700 business leaders across North America and Europe, highlighted how companies are increasingly embedding risk considerations into high-level decision-making in an era shaped by geopolitical instability, technological disruption, and climate volatility.
For Collins, this marks a departure from traditional models, in which risk was often considered as part of compliance or the insurance-buying process. “Insurance is no longer a cost center, it’s a boardroom strategy,” she said. “Speed of decision-making is what we as brokers need to continue to deliver. We need to be a strategic partner and consultant better and faster than ever before.”
The report, developed in partnership with MarshBerry, indicated that only a small minority of executives still view insurance as an unavoidable expense, while more than 40% say it directly contributes to performance and growth.
Cybersecurity tops the list of executives’ risk concerns, cited by 48% of leaders as their primary concern, followed by artificial intelligence disruption and ongoing geopolitical tensions. Supply chain fragility and talent shortages are also compounding these risks.
Despite the growing importance of risk management, executives report mounting pressure on traditional insurance structures. Rising premiums are the most immediate concern, cited by 47% of respondents, while 43% point to gaps in cyber coverage and 40% highlight limited capacity in natural catastrophe markets.
Climate-related risks, in particular, are straining the industry’s ability to provide adequate protection. At the same time, digital threats are evolving faster than underwriting models can keep pace.
Collins noted that these pressures are forcing both clients and brokers to rethink their approach. “Leaders want partners, not policies; insight, not just indemnity,” she said.
It’s also for this reason that clients are increasingly drawn toward more flexible and data-driven solutions, including alternative risk transfer mechanisms such as captives, parametric insurance and pooled arrangements. However, Collins said these solutions aren’t “for everyone.”
“This is a time to educate clients and even co-create solutions with carriers,” she said.
As complexity increases, the role of the insurance broker has expanded beyond traditional placement and renewal discussions. Mid-market firms, once considered less sophisticated buyers, are now seeking the same level of strategic guidance as large multinational corporations. This evolution requires brokers to have a deeper understanding of clients’ financial positions and risk appetites.
“The client profile is shifting,” Collins told Insurance Business. “Brokers need to move beyond renewal discussions and talk about alternative solutions. Risk strategy and tolerance conversations should happen across all segments, not just the Fortune 50 companies.”
Rather than simply negotiating premiums, brokers are increasingly advising companies on how to allocate capital across different types of coverage, or whether to retain certain risks altogether. Insurance solutions are no longer enough; prevention and preparedness are becoming equally critical, with clients investing in risk modelling and external partnerships to mitigate losses before they occur.
At the same time, the human element of resilience is gaining prominence. More than a third of respondents in the WBN survey identified workforce adaptability as a key driver of organizational strength.
While some insurance markets are beginning to soften, Collins cautioned brokers and insureds against focusing solely on short-term pricing relief. Instead, she urged them to use the current environment to prepare for future cycles and explore more sustainable risk strategies.
“The conversation shouldn’t stop at a small price reduction,” the CEO said. “It should focus on long-term strategy. It’s not about copying market terms… it’s about understanding the client’s balance sheet and risk appetite. Sometimes we advise shifting spend from one product to another based on risk exposure.”
