Urbanisation and interconnectedness are increasing the complexity and volume of risk, according to Zurich Corporate Business CEO Thomas Hurlimann.

Companies now face a greater risk of reputational damage from social media use and mistakes when they expand abroad, he told insuranceNEWS.com.au during a short visit to Sydney last week.

Risks are growing faster than global GDP as populations become more concentrated in cities near shorelines and fault lines, he says.

Natural catastrophes are increasing in frequency and severity, and technological advances have made it easier to source goods globally, intensifying supply chain risk.

Mr Hurlimann says potential loss from supply chain disruption continues to grow, prompting Zurich to cover against loss when goods do not arrive, rather than requiring an event trigger that can be difficult to identify.

“It is a very different way to look at it. Everything is agreed beforehand and there is no argument about what the business interruption claim is.”

Another growing area of business risk is in reputational damage, particularly from companies moving offshore and falling foul of regulators there.

But Mr Hurlimann, who is based in Zurich, says although insurers and risk managers need to work to understand different regulatory environments, it is feasible for domestic brokers to work with clients wanting to operate abroad.

He says Zurich has more than 450 international programs in Australia with clients that do business here or Australian companies trading abroad.

Foreign jurisdictions may require a risk to be written locally and will have different regulation – such as rules around premium taxes – so it is vital brokers can identify pitfalls facing clients, Mr Hurlimann says. “It is a minefield if you are not experienced in it.”