As global challenges increasingly intersect, the insurance industry is bracing for a new era of complex risk dubbed a “polycrisis“[[1]], [[2]]. AXA CEO Thomas Buberl recently outlined a potential paradigm shift, where preventative measures and individual responsibility are increasingly tied to insurance costs. This comes as climate change and cyberattacks are now identified as leading threats,prompting insurers to rethink customary models. buberl’s comments signal a potential move towards incentivizing risk mitigation, a concept echoing wider discussions about adapting to an interconnected and volatile world[[3]].
The convergence of geopolitical instability and escalating risks like climate change are creating a “polycrisis,” according to AXA CEO Thomas Buberl. He noted a growing parallel between the defense and insurance sectors in understanding and preparing for increasingly complex and potentially catastrophic events.
Speaking recently, Buberl emphasized the increasing importance of preventative measures within the insurance industry, particularly as climate risk is identified as the foremost threat. He indicated that financing these efforts will require a shift in focus toward proactive risk mitigation. Climate deregulation and cyberattacks are increasingly viewed as primary risks by insurers, signaling a potential reshaping of premium structures.
“If someone wants to contribute” to prevention, “that means lower premiums. If someone doesn’t want to, they will inevitably have to pay a higher premium.”
Buberl explained that insurance policies will increasingly incentivize proactive risk reduction. For example, when rebuilding a home damaged by flooding, policyholders will be expected to implement measures that better protect the property from future events. This approach extends beyond property damage, encompassing health risks as well.
“If I see a risk of pre-diabetes in my blood test, I need to change my behavior,” he said, illustrating the principle of shared responsibility in mitigating potential claims. The CEO reiterated that proactive engagement translates directly into cost savings for policyholders. “If someone wants to contribute” to prevention, “that means lower premiums. If someone doesn’t want to, they will inevitably have to pay a higher premium.”
Proactive Measures Could Lower Insurance Costs
Buberl also expressed hope that a budget will be adopted to restore confidence in France and its international standing. He weighed in on a recently proposed, and subsequently withdrawn, proposal for a “forced loan” from the wealthiest citizens, suggesting that a loan “for a concrete project,” such as defense or healthcare, is open for discussion. He also voiced support for involving citizens in projects benefiting France.
However, he clarified his position as a business leader, stating, “I am a business leader, not a parliamentarian, so the question does not arise for me,” and declined to comment on the specifics of the amendment.
