The world is in mental health crisis – 1 in 8 of us is struggling with mental illness. Insurers are picking up the tab on treatment and support, but there’s more to offer.

The #RiskConversations webinar on our report The Return of Inflation: What it means for insurance examined the outlook for inflation and interest rates, what’s at stake for #insurers and their customers, and strategies for adapting to a changed macroeconomic environment.

Close to a billion people around the world live with poor mental health, according to estimates by the World Health Organization. The pandemic precipitated millions of additional cases of depression and anxiety – by far the most common manifestation of poor mental health – with young people and women disproportionately affected. More worryingly, current global challenges – geopolitical, climatic and economic – do little to abate this growing crisis.

The word of the week at the World Economic Forum in Davos was polycrisis. Speakers explored the interconnected nature of risk, from inflation to ageing populations, and the role insurers play in building resilience.

Here’s what we heard from António Guterres, United Nations Secretary General; Gita Gopinath, First Deputy Managing Director, International Monetary Fund; Roy Gori, CEO & President, Manulife & Lard Friese, CEO & Chairman of the Executive Board, Aegon.

Issue summary

Low population health is associated with reduced economic prosperity, and medical expenses can plunge people into poverty, especially if unexpected. Insurance is a key tool used to manage health risks, facilitating access to and usage of healthcare services and protecting against financial shocks should a health issue arise.  

The effects of inflation, from price instability to the erosion of purchasing power and savings, are top of mind for households and businesses and affect perceptions of and expectations from insurance.

This 60-second video sums up our report by Kai-Uwe Schanz and Pieralberto Treccani on how insurers can respond to the challenge of inflation and continue to provide value to their customers.