Global businesses are operating in a more complex and unpredictable environment as trade tensions, energy pressures, inflation and geopolitical unrest converge. Beazley’s 2025 Geopolitical and Economic Risk & Resilience report, based on a survey of 3,500 senior business leaders, highlights how these challenges are shaping corporate strategy.
According to the report, 68% of businesses view geopolitical and economic uncertainty as a barrier to growth, increasing to 83% by July 2025. Inflationary pressures are now a top risk for 27% of respondents, compared with 24% in 2024. Economic uncertainty has also risen, with 26% naming it as their main threat this year, up from 21% in 2024.
Beazley’s findings suggest that while many firms are focusing on short-term survival, those taking a longer-term approach are finding opportunities to grow. Businesses that are building foresight, improving adaptability, and identifying where risk meets opportunity are gaining ground. The report positioned agility not only as a defence mechanism but also as a competitive advantage.
Shifting focus towards proactive risk management
In response to geopolitical and economic instability, 32% of companies plan to reassess the security of their overseas operations this year, compared with 23% in 2024. This marks a shift in mindset, with businesses viewing security threats as active rather than distant risks.
A third of global firms (32%) also plan to explore insurance solutions that include risk and crisis management, up from 24% last year. Supply chain disruption, once considered a future concern, is now a central operational issue. Approaches such as nearshoring, friendshoring and more flexible logistics are becoming common, with 87% of firms intending to adjust suppliers or reroute operations due to geopolitical pressures, according to Beazley.
Balancing innovation and resilience
Despite global uncertainty, firms continue to invest in emerging technologies such as artificial intelligence, fusion energy and lunar exploration. These sectors carry inherent risk but are seen as critical frontiers for long-term advantage.
To balance innovation with protection, 35% of companies are increasing investment in risk management and loss prevention measures, rising from 23% in January 2024. The report suggested that organizations integrating insurance and resilience planning into their innovation strategies are better positioned to navigate volatility.
Insurance as an enabler of growth
Beazley’s report indicates that businesses are using insurance more strategically to support growth. Risk transfer and prevention measures are being applied not just for protection but to enable expansion into new markets, secure energy and mineral resources, and address emerging risks such as cyber threats and geopolitical disruption.
Bethany Greenwood, CEO of Beazley Furlonge Limited and group head of specialty risks at Beazley, said resilience is now a defining factor for success. She noted that turning risk into competitive advantage is possible through innovative insurance solutions, including political risk coverage, parametric supply chain protection and crisis management services, which allow businesses to act confidently in uncertain conditions.
