Asian companies expect to see a sharp spike in business confidence as they enter 2020, with 76% of firms expecting to be confident by May 20201. However, leaders are also bracing for risky times ahead.
With political instability in Hong Kong and ongoing trade war rhetoric, it is unsurprising that 83% of firms believe 2020 will bring a high or moderately high-risk environment. Economic risk is the top concern, but there is also anxiety about a continually evolving business environment driven by new technology, and closely allied to that - cyber risk.
CNA Hardy Risk and Confidence research – May ‘19
The pace of technological change is what concerns companies. The IMF has stated that in most of Asia, the share of information and communications technology in GDP has increased substantially faster than economic growth. Among the world’s top 10 economies with the largest ICT to GDP ratio, seven are in Asia, including Malaysia, Thailand, and Singapore2.
Against this backdrop, over 80% of firms say they plan to invest in next-generation technology to improve business efficiency as they enter 2020.
In this competitive environment, firms will require a sure touch as they invest in technology upgrades. Close partnership with insurers will be essential if businesses are both to reap the reward of their investments, but also to guard against the enhanced cyber risk associated with greater technology dependence.
1 CNA Hardy Risk and Confidence research was undertaken between February and March ’19, via an online survey of 1,500 business leaders of multinational firms with operations in Europe. Qualitative research was undertaken in May ‘19. In Asia 250 business leaders from 9 different business sectors, with a turnover ranging from US$6.3m to US$126m+ were surveyed.
2 IMF - https://www.imf.org/external/pubs/ft/fandd/2018/09/asia-digital-revolution-sedik.h
About CNA Hardy
CNA Hardy, acting in the UK through Hardy (Underwriting Agencies) Limited and CNA Insurance Company Limited, and in Europe through CNA Insurance Company (Europe) S.A., is a leading specialist commercial insurance provider for clients within both the Lloyd’s and company markets. For more information, please visit CNA Hardy at www.cnahardy.com.
CNA is one of the largest U.S. commercial property and casualty insurance companies. CNA provides a broad range of standard and specialized property and casualty insurance products and services for businesses and professionals in the U.S., Canada and Europe, backed by more than 120 years of experience and approximately $45 billion of assets. For more information, please visit CNA at www.cna.com.