Hub International Limited’s 2025 North American Outlook Report reveals a significant gap in business preparedness for emerging threats, with 73% of respondents acknowledging they are underinsured against risks that could impact profitability.
The report, based on the company’s Executive Survey, underscores the challenges organizations face in managing risks tied to inflation, climate change, cyber threats, artificial intelligence, and geopolitical uncertainty.
Marc Cohen, president and CEO of HUB, stated that the pace at which risks are accelerating demands a more proactive approach. While business leaders are increasingly aware of these risks, many struggle to implement effective strategies.
“The HUB survey results show that leaders are thinking about these risks but require assistance from the right partner. Leveraging insurance to protect profitability, investing in data analytics to improve workforce vitality, and building a comprehensive ERM (enterprise risk management) plan to be resilient against future risks, are the solutions and strategies executives need to consider,” said Cohen.
The report finds that inflation and economic challenges continue to disrupt access to insurance coverage, with 81% of respondents reporting moderate to significant impacts.
Alternative risk transfer solutions, the report suggests, could offer viable pathways for organizations facing rising costs and coverage limitations.
Workforce productivity also emerged as a critical priority, with 66% of U.S. respondents and 75% of Canadian respondents identifying it as a key focus for 2025.
The findings highlight a shift toward data-driven strategies to optimize compensation and benefits, recognizing the link between employee well-being and overall business performance.
The report further notes that 62% of organizations have implemented formal ERM processes, signaling a growing commitment to risk management. Such measures are increasingly necessary for navigating complex and unpredictable environments, enabling businesses to turn potential disruptions into opportunities for growth.
The findings are based on responses from 900 business leaders in corporate, risk, human resources, and nonprofit sectors across 11 industries in the U.S. and Canada.
How can businesses address these challenges effectively? Share your insights in the comments.
