Japan insurance market lags as Asahi ransomware breach hits millions

Cybercrime becomes top Japan business risk as 61% fear attacks.

Cyber risks are emerging as a major concern for Japanese business owners, yet insurance coverage remains “underdeveloped,” according to the latest Allianz Risk Barometer.

Cyber incidents are now the top business risk for 2026 amongst Japanese firms, with 61% citing cybercrime, data breaches, ransomware and IT outages as their main threat, the highest score ever recorded in the country. 

For the insurance market, this points to rising demand for cyber cover at a time when Allianz says protection and recovery capabilities remain uneven, and the local cyber insurance market is still underdeveloped.

Allianz Fire and Marine Japan said recent attacks highlight gaps in preparedness and recovery, increasing the potential for large insured losses from business interruption, data restoration, liability and incident response costs. 

A key example was the September 2025 ransomware attack on Asahi Group Holdings, which led to widespread operational shutdowns and a data breach affecting nearly two million people. 

The Qilin ransomware group claimed to have stolen 27GB of sensitive data, underlining the scale of potential claims linked to notification, forensic investigation, system recovery and third-party liabilities.

Natural catastrophes remain the second-largest risk in Japan, cited by 46% of respondents, with direct implications for property and business interruption insurance. 

Japan accounts for about 20% of the world’s earthquakes of magnitude 6 or higher. A magnitude 7.6 quake late last year damaged almost 1,400 buildings in Aomori and Hokkaido and disrupted ports with tsunami waves of up to 70cm, whilst another magnitude 6.2 event struck the Chugoku region earlier this year.

Such events continue to drive exposure for insurers to large-scale property damage and contingent business interruption across manufacturing, agriculture and fisheries.

Business interruption ranks third at 39% and is closely linked to both natural catastrophes and supply-chain disruptions. 

The prolonged global semiconductor shortage forced major Japanese automakers, including Toyota and Honda, to suspend production at several plants, raising claims risks under BI and contingent BI policies. 

Allianz also noted that only 3% of companies globally consider their supply chains “very resilient”, suggesting continued pressure on insurers from accumulation risks tied to trade disruptions, geopolitical tensions and regulatory actions affecting key suppliers.

Political risks and civil unrest, now ranked fourth in Japan, add another layer of exposure for insurers, particularly for property damage, strike, riot and civil commotion covers, as well as for business interruption. Protests and riots in Japan rose 18.7% from 2023 to 2024, increasing the likelihood of disruption-related claims.