Allianz reveals top business risks for 2025

Natural catastrophes held the third spot in Asia.

Business interruption has been identified as the top risk for Asian companies in 2025, according to the Allianz Risk Barometer. 

Cyber incidents, including data breaches and ransomware attacks, rank second, whilst natural catastrophes remain the third most significant concern following a year of high disaster activity in 2024. 

“Against this backdrop of an increasingly volatile risk landscape, businesses should ensure they are sufficiently protected and their response measures robust,” said Christian Sandric, Regional managing director of Allianz Commercial Asia, in a media release.

This includes adopting measures such as loss prevention, developing multiple suppliers, alternative risk transfer, and multinational insurance policies,” Sandric added.

In Asia, business interruption is particularly prominent, being the top risk in China, Hong Kong, Malaysia, Singapore, and South Korea. 

This risk is heavily linked to supply chain disruptions, which have become more frequent and complex due to the region's growing role in global trade and heightened geopolitical tensions. 

According to Allianz Trade, global trade disruptions occur every 1.4 years on average and can result in economic losses of 5% to 10% of product costs.

For Cyber incidents, a 23% year-on-year increase in weekly cyberattacks per organisation was recorded during the second quarter of last year. 

Notable incidents include a distributed denial-of-service attack on Japan Airlines, a cyberattack on Singapore law firm Shook Lin & Bok, and a breach at India’s largest crypto exchange, WazirX. 

Globally, data breaches were the most feared cyber exposure, cited by more than 60% of respondents.
Natural catastrophes hold the third spot in Asia, driven by increasing climate-related events. 

In Japan, a magnitude 7.5 earthquake in the Noto Peninsula caused insured losses of $3b and economic losses of $12b. 

Hong Kong recorded its heaviest rainfall in 140 years due to Typhoon Haikui. Globally, 2024 marked the fifth consecutive year with insured losses exceeding $100b, with extreme weather events causing significant damage worldwide.

These findings come from 3,700 risk management professionals across more than 100 countries.

Globally, cyber incidents rank as the number one risk for the fourth consecutive year, accounting for 38% of responses, followed by business interruption at 31% and natural catastrophes at 29%. 

“What stands out this year is the interconnectivity of the top risks. Climate change, emerging technology, regulation and geopolitical risks are increasingly intertwined, resulting in a complex network of cause and effect,” Allianz Commercial’s Chief Underwriting Officer, Vanessa Maxwell, also said in a release.

“Businesses need to adopt a holistic approach to risk management and consistently strive to enhance their resilience in order to address these fast-evolving risks,” Maxwell added.