I’m thrilled to sit down with Simon Glairy, a renowned expert in insurance and Insurtech, whose deep knowledge of risk management and AI-driven risk assessment offers invaluable insights into today’s complex global landscape. With the latest AXA Future Risks Report shedding light on rising public anxiety, societal fragmentation, and the pivotal role of the insurance industry, our conversation explores the forces shaping perceptions of risk, the challenges of collective action, and how insurers can lead in building resilience against emerging threats like climate change and cybersecurity.
What do you think is behind the overwhelming feeling among 93% of people worldwide that crises are on the rise?
I believe this perception stems from a combination of real-world events and the way information travels today. We’re seeing more frequent and intense challenges—think climate disasters, geopolitical tensions, and cyber threats—hitting closer to home. Add to that the 24/7 news cycle and social media amplifying every incident, and it creates a sense of constant crisis. People are more aware, but that awareness often translates into anxiety when solutions feel out of reach.
How do you interpret the finding that nearly 60% of citizens, and even more in countries like France and the United States, see their societies as fragmented?
This reflects a growing erosion of shared values and trust in institutions. In many places, economic inequality, political polarization, and cultural divides have created a sense that we’re no longer on the same team. In France, for instance, historical tensions around social reforms, and in the U.S., deep partisan divides, amplify this feeling. When people feel disconnected, it’s harder to rally around common goals, especially when facing massive risks that require unity.
What impact does societal fragmentation have on a country’s ability to address major risks?
Fragmentation is a real roadblock. When a society is divided, it loses the collective willpower and trust needed to tackle big issues like climate change or pandemics. Without a shared sense of purpose, you get gridlock—people can’t agree on priorities or sacrifices. It’s like trying to steer a ship with the crew pulling in different directions. The result is delayed action, which often makes risks worse before they’re addressed.
Given that many people still value democracy and freedom of expression, how can these principles help mend societal divides?
These values are a foundation for dialogue, which is critical to rebuilding trust. Democracy, even when messy, allows for diverse voices to be heard, and freedom of expression ensures tough conversations can happen. If harnessed well, they create space for compromise and understanding. For instance, community-led initiatives that encourage open debate on local risks can foster a sense of shared responsibility, slowly knitting fragmented groups back together.
Why do you think there’s such a disconnect between experts advocating for global solutions and governments focusing on individual, isolated responses to risks?
Experts often see risks like climate change or cybersecurity as borderless, requiring coordinated global strategies. Governments, however, are constrained by national interests, political cycles, and budget priorities. They’re often more reactive, addressing immediate voter concerns rather than long-term systemic threats. This mismatch isn’t just about vision—it’s about incentives. Politicians face pressure to deliver quick wins, while global collaboration takes time and compromise.
How can the insurance industry, seen as a trusted player by both experts and the public, step up to manage emerging risks?
Insurers are in a unique position because they’re already wired to think about prevention and resilience. They can lead by developing innovative products—like parametric insurance for climate events—that protect against new risks. They also have data and expertise to educate both individuals and policymakers on proactive measures. By partnering with governments and tech firms, insurers can scale solutions, whether it’s for cyber threats or natural disasters, while maintaining a focus on affordability and access.
What does it mean for insurers to be ‘architects of resilience’ in today’s world?
It’s about designing systems that don’t just react to crises but anticipate and mitigate them. Practically, this means using AI and big data to predict risks, creating flexible policies that adapt to changing threats, and fostering solidarity by ensuring vulnerable populations aren’t left behind. It’s a tall order, but insurers can shape how societies prepare for and recover from disruptions, whether it’s a cyberattack or a hurricane.
What challenges do insurers face in balancing innovation with the need for solidarity when addressing complex risks?
The biggest challenge is ensuring that cutting-edge solutions, like AI-driven risk models, don’t exclude those who can’t afford them. Innovation often comes with high costs, and there’s a risk of widening gaps if only well-off clients or regions benefit. Insurers must also navigate regulatory hurdles and public skepticism about data privacy. Striking a balance means investing in scalable, inclusive tools while building trust through transparency and community-focused initiatives.
What is your forecast for the role of insurers in managing the top emerging risks like climate change and cybersecurity over the next decade?
I see insurers becoming central to both prevention and recovery in these areas. With climate change, they’ll likely drive adaptation through incentives for sustainable practices and broader coverage for extreme weather events. On cybersecurity, expect insurers to partner with tech firms to set standards and offer dynamic policies as threats evolve. The next ten years will test their ability to innovate while staying accessible, but I’m optimistic they’ll rise as key architects of global resilience if they prioritize collaboration and trust.
