This year’s Global Risks Report from the World Economic Forum shows companies must prepare for increased volatility and uncertainty, Zurich CEO General Insurance Raj Nanra has warned.

Zurich and Marsh contributed to the report, which highlights extreme weather events, natural disasters and cyber attacks as the top three risks by likelihood.

Mr Nanra says cyber and environmental risks continue to “loom large” in the Australian market.

“On the issue of environmental risks, the real wake-up moment was the Queensland floods in 2011,” he said. “Before that event the relationship with the market was more traditional.

“Insurers had a better grasp on the likelihood and severity of weather events and those ‘black swan’ catastrophes were seen as more of a one-in-20 or 30-year proposition.

“Today we need to adopt a posture that unforeseen catastrophic events could happen any time, anywhere.

“In June 2016 there were hailstorms in Alice Springs, in 2015 there was a tornado in Kurnell, not to mention Cyclone Debbie last year. Globally, we’ve seen the impact of hurricanes Harvey, Irma, Maria and severe wildfires across the US, Chile and Portugal.

“These are not what you would call typical or predictable events. Issues around severity and predictability of cyber events are much the same.”

Mr Nanra says insurers and brokers have a much more active role to play in helping customers manage and mitigate their exposure.

“Today I’d characterise the relationship as more of a partnership that takes a forward-looking view, rather than the traditional transaction where risk is priced and sold,” he said.