Rising populism and the decline of the US as a conflict mediator have brought about major shifts in geopolitical power centres since the financial crisis.

These changing dynamics are the focus of new research from Lloyd’s and the University of Cambridge’s Centre for Risk Studies, which explores the transformation of the geopolitical risk landscape over the last decade and focuses on the ten most pressing risks these themes present today, which range from cyber attacks, social unrest and the migration crisis.

Shifting Powers: Meeting the Challenges of the Geopolitical Landscape also provides a strategic perspective on these systemic risks, whilst analysing their probability and impact.

Lloyd’s aims to use this research to support businesses with the resources and knowledge required to help protect their organisations, proposing a series of steps for businesses to consider, such as assessing supply chain exposure and taking precautions to safeguard IP and trade secrets against major cyber attacks.

Bruce Carnegie Brown, chairman of Lloyd’s, said: “The geopolitical landscape is more complex, intricate and interconnected than ever before. Lloyd’s has a unique role as a hub of risk expertise and innovation, and we are delighted to have partnered with the University of Cambridge’s Centre for Risk Studies to identify ways we can help businesses manage these geopolitical challenges. Lloyd’s, and the wider insurance industry, can play a central role in addressing geopolitical risk, and in doing so create a safer, more sustainable world.”

Andrew Coburn, chief scientist at the University of Cambridge’s Centre for Risk Studies, added: “The changing nature of geopolitics poses a significant challenge to an industry traditionally associated with protecting physical assets. Insurers must innovate to safeguard the dependencies and complex operational practices which underpin global commerce from a host of geopolitical risks as they intersect with technology, public opinion, climate change, and other factors. We are delighted to contribute to this thought leadership promoting ambitious and necessary changes within the industry which will help to safeguard us all.”

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