FM Global insurance resilience report and indicator aid
The coronavirus (Covid-19) pandemic has created a vacuum for business, a global level of business uncertainty that many have never seen in their lives before.
Countries across the globe are battling with the issues of healthcare, personal protection equipment and supplies and a lot more.
Zurich is grappling with a variety of challenges impacting small businesses and the self-employed especially.
The social-distancing strategies, Federal orders and early financial interventions are helping to stabilise the situation.
So what makes me write to suggest that Zurich will be back before many other cities in the world who are much larger?
A clue is in the 2019 Global Resilience Index report created by FM Global Insurance.
FM Global researches the business environment in over 100 countries across the globe. The countries are then rated on an index according to factors related to:
- Corporate Governance
- Political stability
- Risk Environment
- Supply chain logistics and transparency
Switzerland as a country scores well and is rated 3rd overall. The strong economic foundation and supply chain score aids the cumulative result.
This indicates unsurprisingly that Zurich and Switzerland will have a high level of stability and resilience through the crisis which will provide a good springboard to recovery.
Switzerland enjoys a good position and relationship with key partners like Germany (4th) and the United Kingdom (10th).
Zurich has in the past invested heavily in business with these countries and China (who scored lower than expected) and positioned itself well as a business beneficiary.
Evidence from Zurich airport confirms this:
Zürich Airport has posted a +10.6% year-on-year increase in 2019 non-aviation revenues to CHF548.6 million (US$578.9 million).
The airport operator said the strong performance came as a result of solid passenger growth, increasing commercial revenues and the full consolidation of its international business.
The implementation of “kurzarbeit” short-time working and other financial support measures by the government will also aid this bounce-back.
The Kurzarbeit compensation plan enables the employee to receive 90% of their initial salary.
Resultant job losses are lower than other cities and Zurich`s form of “induced coma” on local spending and work can be revived in a prompt positive way.