APAC insurance gap above 80% leaves weather exposure

But cyber incidents remain the top risk for APAC businesses, the report showed.

The insurance gap in Asia-Pacific (APAC) remains above 80% despite a quieter hurricane season in 2025, leaving businesses highly exposed to the financial impact of severe weather events in the coming year, according to the Allianz Risk Barometer 2026.

Natural catastrophes ranked as the fifth most significant risk in APAC by businesses, the barometer report revealed.

Whilst cyber incidents remain the top risk for APAC, cited by 36% of respondents, AI has climbed from ninth to second place, with 32% of firms now identifying it as a major threat.This trend reflects the accelerated adoption of Generative AI across the region, 

where more than 90% of companies plan to scale up its use over the next two years.

Expectations for 2026 focus on the operational and legal liabilities that accompany rapid AI integration. 

Allianz notes that adoption often outpaces governance and workforce readiness, leading to concerns over system reliability, data quality, and intellectual property misuse.

For the first time in five years, business interruption has dropped out of the top two spots in the region, falling to third place. 

However, it remains a critical expectation for firms as it is increasingly tied to geopolitical instability and trade protectionism.

The outlook for business interruption is heavily influenced by a sharp increase in trade restrictions, which affected an estimated $2.7t of merchandise in the past year. 

Just 3% of surveyed firms describe their supply chains as highly resilient, prompting an expected shift toward regionalisation and sourcing from politically aligned economies.