Business interruption emerged as the top risk for companies across Asia in 2025, according to the latest Allianz Risk Barometer published by Insurance Asia. Cyber incidents, including data breaches and ransomware attacks, follow closely behind, while natural catastrophes retain their position as the third most significant concern after a year of severe disaster events in 2024.
In a media release, Christian Sandric, Regional Managing Director of Allianz Commercial Asia, emphasized the importance of robust risk management strategies. “Given the increasingly volatile risk landscape, businesses must ensure they are adequately protected with strong response measures,” Sandric said. He recommended a combination of preventive measures such as loss prevention, developing a diverse supplier base, alternative risk transfer, and multinational insurance policies to safeguard operations.
In Asia, business interruption stands out as the primary risk in key markets, including China, Hong Kong, Malaysia, Singapore, and South Korea. This risk is closely tied to the region’s role in global supply chains, with disruptions becoming more frequent and complex due to heightened geopolitical tensions and global trade shifts.
Allianz Trade data underscores the gravity of the situation, showing that global trade disruptions occur, on average, every 1.4 years and can lead to economic losses of 5% to 10% of product costs.
Cyber incidents, meanwhile, have become an ever-growing threat. The Allianz Risk Barometer reports a 23% year-on-year increase in the number of cyberattacks per organization in the second quarter of 2024. High-profile incidents, such as the cyberattack on Japan Airlines, a breach at Singapore’s Shook Lin & Bok law firm, and a hack on India’s largest cryptocurrency exchange, WazirX, highlight the scale of the challenge. Data breaches remain the top cyber risk, with over 60% of respondents naming them as their greatest concern.
Natural catastrophes rank third in the region, fueled by an increase in climate-related disasters. In Japan, a magnitude 7.5 earthquake in the Noto Peninsula resulted in $3 billion in insured losses and $12 billion in economic losses. In Hong Kong, Typhoon Haikui caused the heaviest rainfall in 140 years. The global picture is similarly alarming, with 2024 marking the fifth consecutive year of insured losses exceeding $100 billion, driven by extreme weather events.
These findings are based on responses from over 3,700 risk management professionals across more than 100 countries. Globally, cyber incidents remain the top risk for the fourth consecutive year, cited by 38% of respondents, followed by business interruption at 31% and natural catastrophes at 29%.
Vanessa Maxwell, Chief Underwriting Officer at Allianz Commercial, pointed to the growing interconnectedness of the world’s risks. “This year, we see how climate change, emerging technology, regulatory shifts, and geopolitical tensions are becoming increasingly intertwined, creating a complex web of cause and effect,” Maxwell stated. “To navigate these fast-evolving threats, businesses must adopt a holistic approach to risk management and continually enhance their resilience.”
As the risk landscape grows more intricate, experts stress the importance of proactive, comprehensive strategies for organizations looking to safeguard their operations and mitigate the cascading impacts of these global challenges.
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