Welcome to our first Singapore Snapshot Report – Risk & Resilience in a Time of Change.
As Singapore’s boardrooms navigate the impact of climate change, new regulations, and the rising threat of cyber risks, what are the biggest risks facing business executives in Asia today?
How are firms adapting to the changing risk landscape? When risks faced today could impact operations for years to come, how can executives make decisions now that their businesses, staff and stakeholders will be grateful for?
Key Findings
The business leaders we surveyed in Singapore told us…
30%
Believe they operate in a high-risk environment, falling from 35% in 2022.
9%
Are less resilient to risks impacting their business than a year ago.
24%
Were unprepared to deal with technology disruption risks such as AI and new technologies.
25%
Said cyber risk is the biggest technology threat to their business now.
25%
Feel unprepared to deal with climate risks.
37%
Plan to explore insurance options that include risk and crisis management.
The insurance industry is set to play a significant role in supporting businesses as they navigate emerging risks and an ever-evolving threat landscape. It is heartening that more than a third (37%) of businesses we surveyed in Singapore plan to invest in insurance and risk management. We explore the role insurance has to play in supporting business leaders and more in this report.
Employers’ liability: Post-pandemic risks linger on
The new world of hybrid working that first emerged during the COVID-19 pandemic is here to stay, creating growing challenges for business leaders in Singapore.
Our data shows that concerns over employer risk, defined as failure to support staff, including mental health concerns, or facilitating safe operating conditions, among business leaders in Singapore are growing as they struggle to meet their responsibilities to employees.
When integrating and supporting employees, business leaders in Singapore undoubtedly face unique challenges. There is great diversity in Singapore’s workforce, most notably across age and background, simultaneously creating opportunities and challenges for employers.”
Lucien Mounier
Head of Asia Pacific, Beazley
ESG risk on the rise for Singaporean executives
The regulatory burden placed on firms by new environmental, social and governance (ESG) rules is increasing across the globe, with Singapore being no exception. Keeping pace with the new regulations while maintaining efficiencies is a key challenge for businesses in Asia.
Despite this, our data shows that business leaders in Singapore are less fazed than their international peers. In the future, Singapore’s ESG regulation will continue to evolve and global business leaders across all sectors will face an increasingly difficult task when trying to anticipate and respond to the reforms required of them.
ESG risk is perceived as a growing threat among business executives in Singapore, with 19% of those surveyed ranking ESG risk as their top business risk in 2023, rising to 20% anticipating this to be a top risk in 2024.
Employers in Asia are recognising they face growing risk from within their organisations and getting the ‘S’ and the ‘G’ in ESG right is increasingly important.”
Nicholas Tey
Regional Manager Asia, International Financial Lines, Specialty Risks, Beazley
Cyber risks: On the front line
As the world experiences an uplift in cyber-attacks almost two years on from Russia’s invasion of Ukraine, Singapore’s businesses are not immune to the persistent threat that cyber-crime groups pose. These groups have targeted businesses across the economy, exposing firms to costly ransoms and significant reputational damage.
While our data shows that the perceived threat of cyber risk dropped in 2023, it is concerning that more than one in five (21%) of businesses in Singapore feel unprepared to deal with cyber risks. This rose to 31% among small businesses with revenue between SGD $1m to S$9.99m. Contrary to the perception of the cyber threat, the frequency of incidents, the disruption they cause, and the economic cost are increasing across the globe.
Concern over the threat of a cyber attack is set to rise in 2024, as Singaporean business leaders recognise that Cyber is a risk that they cannot afford to lose focus on.”
Teck Siong Ng
Underwriter – Cyber Risks, Asia, Beazley
Next Steps
The risk landscape in Singapore and across Asia more widely is changing rapidly with company leaders facing a mixture of employer, ESG, and cyber risks among others. So, it is no surprise that our data reveals that 33% of the business leaders in Singapore that we surveyed believe they will be operating in a high-risk environment in 2024, compared to 31% in 2023.
Unforeseen events come and go, but insurance has a larger role in supporting firms as they grow and in helping to protect their assets. The role of the specialty insurance market will be vital in helping businesses navigate choppy waters in the future.
The descriptions contained in this communication are for preliminary informational purposes only. Coverages can be underwritten by Beazley syndicates at Lloyd’s or Beazley Insurance dac or Lloyd’s Insurance Company (“Lloyd’s Brussels”) and will vary depending on individual country law requirements and may be unavailable in some countries. Coverages are available in the US only on a surplus lines basis through licensed surplus lines brokers. The exact coverage afforded by the products described in this communication are subject to and governed by the terms and conditions of each policy issued. The publication and delivery of the information contained herein is not intended as a solicitation for the purchase of insurance on any US risk.
When integrating and supporting employees, business leaders in Singapore undoubtedly face unique challenges. There is great diversity in Singapore’s workforce, most notably across age and background, simultaneously creating opportunities and challenges for employers.”
