Barbados has been an established captive insurance jurisdiction since the 1980s. As the risk landscape changes, it is well positioned to adapt with the times, says Kirk Cyrus of Strategic Risk Solutions.
In its 2020 “Global Risks Report”, the World Economic Forum (WEF) stated that the sustainable development of global economies would be impacted by key risks associated with the environment, technology, and public health.
That was at the start of 2020, when there was already discussion of the impact of climate change, extreme weather and biodiversity loss. Public finances were burdened by the high incidences of non-communicable diseases and the economic and social cost of their management.
The WEF’s “COVID Risks Outlook” published in May highlighted global recession as the biggest risk concern. It was concerned about corporate bankruptcy and structural issues in the economy related to deep unemployment caused by lost jobs, lay-offs and furloughs associated with the COVID-19 pandemic.
What is now certain is that risk management planning in the future must consider supply chain disruption, non-material damage losses and employee-related claims, as well as government and regulatory stakeholder intrusion.