Japan cyber risk exposes insurance gaps as losses hit 27%

Aon says data breaches rank as the top threat in Japan and worldwide in its 2025 survey.

Japanese organisations are reassessing their insurance programmes as cyber threats, supply chain disruption and severe weather events reshape the country’s risk landscape, according to Aon’s 2025 Global Risk Management Survey: Japan’s Evolving Risk Landscape.

In its 2025 Global Risk Management Survey, which includes country findings for Japan, Aon said cyber attacks and data breaches rank as the top risk both globally and in Japan. 

In Japan, 27% of organisations reported cyber-related losses.

Although 75.9% said they have mitigation processes in place, only 12.6% have business continuity plans, indicating gaps that could affect insurance coverage and claims outcomes.

The report said this has increased focus on cyber resilience, including stronger technical controls, response planning and appropriate cyber insurance protection. 

Companies are also reviewing policy limits and coverage terms to ensure they reflect current exposure levels.

Supply chain disruption is another key risk for Japan, reflecting the country’s reliance on imported materials and energy. 

Geopolitical tensions, transport delays and severe weather events have heightened concerns about contingent business interruption and trade credit exposures. 

Aon said companies are exploring supplier diversification and alternative production locations, alongside reviewing insurance cover for supply chain risks.

Weather and natural disasters remain a major issue for Japanese businesses. 

Frequent typhoons, floods and earthquakes continue to affect manufacturing, logistics and energy operations. 

The report said organisations are placing greater emphasis on site resilience and multi-site insurance cover to manage losses from large-scale or concurrent events.

Structural labour shortages and demand for specialised skills are increasing operational risks. 

Companies are investing in upskilling and reskilling, whilst insurers are assessing how workforce constraints could affect business interruption and liability exposures.

Aon said Japanese firms are carrying out broader insurance reviews to ensure programmes reflect evolving risks, including cyber, weather-related losses and supply chain disruption.