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Quick Takes

Views on Mental Health In The Workforce are Misaligned, From the Top Down

Source: IBM Institute

Less than half of workers surveyed worldwide believe their organization is doing enough to support their physical and mental health during the COVID-19 pandemic — despite four in five employers’ belief that they are providing such support. At the same time, only about half of employees surveyed think their executives are genuinely concerned about their wellbeing, according to a report by the IBM Institute for Business Value.

This research illustrates a stark contrast between how employers feel they handle the sudden shift to remote work and how employees feel it was actually handled. IBM interviewed 3,450 executives in 20 countries and sent online questionnaires to 50,000 people in eight countries. Many of the people surveyed also expressed how overworked and disconnected they are when working remotely.  

As many organizations consider their post-COVID business strategy, these findings show that executives must align with their employees’ priorities and needs. “Employers significantly overestimate the effectiveness of their support and training efforts,” concludes the report. To build successful businesses, IBM says that executives should “enable a diverse workforce to perform optimally.”

Rise in Carbon Emissions Brings Concern Over Building Sector’s Carbon Footprint

Source: The Global Status Report for Buildings and Construction (5th edition)

The operation of global buildings reached their highest-ever carbon emissions level in 2019 at 28% of total global energy-related carbon dioxide emissions, pushing the sector further away from achieving its Paris Agreement goals. That number jumps to 38% when emissions from building construction is accounted for, according to this year’s Global Status Report for Buildings and Construction

This year’s report highlights the disruptions from COVID-19 in the building and construction sectors, as well as introduces a new index to track the progress of climate initiatives. The pandemic slowed global construction activity, which led to a drop in global energy demand and carbon dioxide emissions — 5% and 7%, respectively. 

But COVID-19 also grew interest in and the market for “green” buildings as governments and key players in the buildings and construction sector plan for a post-COVID green recovery. However, these commitments and initiatives will need to rapidly increase in scale to get on track for a net-zero carbon building plan by 2050.

South Asia Sees a Shrinking Middle Class and Surge in Poverty

Source: Pew Research Center

More people moved into poverty in South Asia in 2020 compared to other regions globally, reversing years of progress in the region. South Asia also saw the biggest decline in its middle class, which decreased by 32 million people, while East Asia and the Pacific lost 19 million, according to Pew Research Center. 

Globally, there were 54 million fewer people in the middle class in 2020 than the pre-pandemic forecasted number. The global population living in poverty rose to an estimated 803 million — compared to the 672 million that was initially expected pre-pandemic. “The steep rise in global poverty is driven by the fact that many who were in the low-income tier prior to the pandemic lived on the margin of poverty,” according to Pew. 

The path to recovery remains unclear as regions start to revive their economies — although vaccine distribution has led to a rise in consumer confidence. The pace and strength of the recovery will depend on access to medical supplies, governmental support and regional economic and societal status prior to COVID-19.

Insurance for M&A Deals Surged in 2020

Source: Marsh

The communications, media and technology sectors held the highest number of insurance policies to protect M&A deals in 2020 according to new data from Marsh McLennan. Mergers and acquisitions in the technology sector held the most deal volume in the United States at $346.5 billion, a result of an increase in e-commerce, remote working and digital transformation in different sectors.

M&A activity in the U.S. was down 21% by value and 16% by deal count in 2020 compared to 2019. Despite this sudden halt in activity during the second quarter, transactional risk insurance in the U.S. and Canada reached record highs in the fourth quarter — ending in a total of $545 billion in deal value. Insurers shifted their focus to COVID-related impacts on companies.

The transactional risk insurance market will face multiple challenges in 2021, such as a continued increase in claims frequency and severity, rising costs and a focus by insurers on claims related to COVID-19. 

Why US Supercities Are Losing Appeal

Source: Milken Institute, 2021

San Francisco, California, lost its place as the best-performing city in the United States, dropping 23 places in rank. It was replaced by Provo, Utah — a relatively new innovation center with a lower cost of living than California’s “supercities.” Intermountain western and southern cities outperformed those originally popular coastal cities, according to Milken Institute

The annual index tracks cities’ regional economies based on job creation, wage growth and high-tech innovation. For the first time, the 2021 criteria also considered broadband access and housing affordability to hold cities accountable to providing a more inclusive economy. 

Shifts to remote work during COVID-19 resulted in U.S. residents relocating away from pricier cities to ones that are more affordable. An Oliver Wyman Forum survey found that 2% of respondents have permanently or temporarily relocated because of COVID-19, while another 14% are planning to relocate or leaning toward doing so. These less-populated cities may be better positioned to prosper after the pandemic, with a higher chance of attracting companies, capital and citizens.

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