Canada’s business leaders are most concerned about risks associated with a possible economic downturn, finds Marsh’s Global Risks Report 2025.
The report defines ‘economic downturn’ as a near-zero or slow global growth lasting for several years, or a global contraction, such as a recession or depression. Findings are based on Marsh’s Global Risks Perception Survey results from more than 900 global business, governments and academic leaders.
Canada’s business leaders form a united front when it comes to their top risks, the report shows. Four of the Top 5 risks they say they’re facing are economic in nature.
In second place is the labour and talent shortage, in third is inflation, and in fourth is poverty and inequality related to wealth or income.
The fifth top concern among Canadian leaders is tied between the adverse outcomes of artificial intelligence (AI) technologies, and misinformation and disinformation.
Part of the reason why economic risks dominate Canadian business leaders’ concerns might be due to newly inaugurated U.S. president Donald Trump’s suggestions that his administration will implement higher tariffs.
Canada is found to be of particularly high risk for being targeted with restrictive U.S. trade measures, the Marsh report says, citing external research.
And previous Canadian Underwriter reporting cites disruption to the supply chain, increasing costs and delayed shipments as possible adverse outcomes from increased tariffs.
As for impacts on insurance uptake, CU sources have previously mentioned economic downturn as a reason that clients — both personal and commercial — opt to reduce their overall insurance spend, as they look for ways to curb increasing lifestyle or business costs.
Technology risk rising, extreme weather less worrisome
While economic risks prevail in Canada, worries about technology-related concerns are quickly rising. Tech risk particularly dominates concerns in developed countries.
As businesses in Canada, including insurance industry leaders, increase the use of AI in their operations, many also see a risk related to this uptick.
“Poor quality content and lack of trust in information sources continue to present a threat to societies,” the report reads. “Algorithms, especially complex machine learning models, can also be an entry point for cyberattacks that use disinformation.”
CU sources have previously reported increases in deepfake-related phishing attempts targetting clients, with the increased prevalence of open-source generative AI software.
Yet despite Canada’s record-breaking insured loss year, where damages surpassed $8.5 billion in 2024, disaster-related risks do not top the country’s most pressing business risks, survey results show.
On a global scale, however, extreme weather events are a key concern for the year ahead, with 14% of respondents selecting it as a material crisis in 2025.
Feature image by iStock.com/ronniechua
