Japanese firms absorb rising insurable risk costs, Aon says

Aon finds 74.7% have risk units, yet 47.6% still report exchange-rate-linked losses.

Japanese companies are facing rising exposure to insurable risks such as cyber attacks, supply chain disruption, natural disasters and product liability, according to Aon’s 2025 Global Risk Management Survey Japan findings.

Cyber attacks and data breaches remain the top business risk in Japan, supporting continued demand for cyber insurance. 

Supply chain or distribution failure ranked second, driven by geopolitical tensions, extreme weather and trade policy shifts, all of which increase business interruption risk.

Product liability and recall risks are more prominent in Japan than in other regions.

About 63.6% of respondents reported losses from product liability or recall incidents, whilst 47.6% cited losses linked to exchange rate fluctuations, reflecting Japan’s exposure to global markets and manufacturing risks.

Risk management is relatively well established, with 74.7% of organisations having a formal risk management and insurance department. 

About 75.3% measure their total cost of insurable risk, and 83.3% said these costs are increasing, pointing to sustained insurance spending as loss pressures remain elevated