The Global Risks 2013 report is produced by the World Economic Forum with support from Marsh & McLennan Companies and other partners. It is developed from an annual survey of over 1,000 experts from industry, government, academia and civil society who were asked to review a landscape of 50 global risks.

The global risk that respondents rated most likely to manifest over the next 10 years is severe income disparity, while the risk rated as having the highest impact if it were to manifest is major systemic financial failure. There are also two risks appearing in the top five of both impact and likelihood - chronic fiscal imbalances and water supply crisis. Click here to read more.

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Is your property underinsured?

The cost of rebuilding your premises or replacing equipment after a major incident may be more than you think. In fact, Marsh's Valuation Services Practice finds that about 20% of companies that perform regular valuations, or have an indexation scheme in place, are at least significantly underinsured, and about 10% are severely underinsured. These percentages grow to about 60% and 30% for firms that don't regularly review the insurable value of their assets. It is rare that Marsh's team finds that companies are significantly overinsured.

Underinsurance is a critical issue: post-loss it may even mean the difference between survival and failure. If you insure for the wrong amount you may not receive the full value of your loss if you have a claim.

Marsh has prepared this Adviser document to explain the impact of underinsurance, common calculation errors and the importance of professional valuations. For further information and assistance please contact your usual Marsh representative.

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