Allianz Risk Barometer: Cyber Risks Dominate as Key Concern for Fifth Consecutive Year

In 2026, cyber risk has once again been identified as the top global risk, according to the latest Allianz Risk Barometer. This concern ranks first across all regions and company sizes.

Artificial intelligence (AI) has made a significant leap, securing the No. 2 position, up from tenth place in 2025. This marks the most substantial rise in this year’s rankings. Both cyber and AI are now among the top five concerns for businesses across nearly every industry sector.

In addition to cyber and AI, respondents highlighted business interruption, changes in legislation and regulation, climate change, and geopolitical risks as their primary concerns for 2026.

Cyber has been recognized as the leading global risk for the fifth consecutive year, achieving its highest score yet, with 42% of respondents citing it as a concern. This risk is prevalent across all surveyed regions—Americas, Asia Pacific, Europe, and Africa and the Middle East—and is a primary concern for large (> $500 million annual revenues), mid-sized ($100 million to $500 million), and smaller companies (< $100 million).

The scope of cyber risk encompasses cyber attacks, including data breaches and malware/ransomware, as well as IT network disruptions and associated penalties.

Allianz emphasizes the growing reliance on a limited number of third-party suppliers for services like cloud computing and AI solutions, which poses significant risks. Recent attacks and outages have disrupted businesses, supply chains, and the broader economy.

“Digital infrastructure and technology are now critical to all businesses and their supply chains. Complex interconnected systems exist within organizations, third-party suppliers, and customers. As we have seen with recent incidents, a cloud outage, technical glitch, or malicious attack can have huge implications for a business’s ability to produce and sell its goods and services, with the effects rippling through supply chains,” stated Rishi Baviskar, Global Head of Cyber Risk Consulting at Allianz Commercial.

Artificial intelligence has surged to No. 2 (32% of responses) in this year’s Risk Barometer, marking its highest position ever, up from No. 10 in 2025.

The rapid ascent of AI in the rankings reflects both the risks associated with its use and its broader societal, political, and economic implications. Allianz notes that AI’s risks are interconnected with other top concerns, including cyber threats, political instability, macroeconomic shifts, and regulatory changes.

“Companies increasingly see AI not only as a powerful strategic opportunity but also as a complex source of operational, legal, and reputational risk. In many cases, adoption is moving faster than governance, regulation, and workforce readiness can keep up—pushing AI into the top tier of global risks for the first time,” explained Ludovic Subran, Chief Economist at Allianz.

Organizations are becoming more aware of the challenges associated with AI implementation, such as data quality issues, integration challenges, and a shortage of skilled talent. New liability exposures are emerging around automated decision-making, biased models, and uncertainty regarding responsibility for AI-generated outputs. Concerns about disinformation and deepfakes are also on the rise.

To mitigate the impact of increasing AI adoption, 49% of companies are focusing on education, retraining, and upskilling initiatives. Additionally, 45% are reshaping roles to emphasize adaptability and collaborative problem-solving, while 40% are replacing low-skilled roles with high-skilled ones.

When asked about potential “black swan” scenarios in the next five years, 19% of respondents expressed concern over breakthroughs in quantum computing that could render current encryption methods obsolete.

Business interruption has dropped to third place in 2026 (29%), after consistently ranking No. 1 or 2 for the past decade. Despite this shift, Allianz notes that business interruption remains a significant concern, as supply chains can be affected by other risks in the global top 10, including cyber threats, climate change, and geopolitical conflicts.

The past year has seen a rise in protectionist trade policies and tariff wars, creating uncertainty in the global economy. Regional conflicts, such as those in the Middle East and Ukraine, along with civil unrest in various countries, have further complicated the landscape.

Respondents identified global supply chain paralysis due to geopolitical conflict as the most plausible “black swan” scenario for business interruption in the next five years (51%). Additionally, mass social unrest and political instability impacting business continuity ranked fourth (29%). Despite these rising pressures, only 3% of respondents consider their supply chains to be “very resilient.”

To adapt, half of the respondents are exploring new markets and products, while 49% are renegotiating and diversifying their supply chains. Many are also streamlining operations to reduce costs and investing in advanced analytics and supply chain management software. Over a third (35%) are considering nearshoring and evaluating domestic manufacturing options.

Changes in legislation and regulation have maintained their position at No. 4 for the third consecutive year, with 26% of respondents identifying it as a top risk.

Allianz highlights that divergence in regulatory approaches is a defining risk for 2026, with major jurisdictions moving in different directions regarding digital/AI, prudential, and sustainability regulations. The U.S. is pursuing deregulation to lower business costs, while Europe aims to simplify regulations while upholding robust safety standards. Meanwhile, China seeks to foster innovation while maintaining state oversight.

“This divergence is fast becoming a critical driver of global risk: it fragments compliance expectations, reshapes competitiveness, and increases uncertainty at a time of geopolitical, technological, and financial volatility,” noted Subran.

Natural catastrophes have slipped to No. 5 (21%) globally, following two years in the third position, largely due to a quieter hurricane season. However, insured losses from catastrophic events still reached $100 billion for the sixth consecutive year, with significant losses stemming from the January 2025 wildfires in California.

Secondary perils, such as flooding and severe thunderstorms, continue to drive substantial losses. “These events demonstrate that losses from perils once considered secondary are now comparable to traditional ‘peak’ risks, with climate change amplifying both their frequency and severity,” stated Keerthy Mohandas, Catastrophe Risk Research Analyst at Allianz Commercial.

Climate change ranked sixth this year (19%), down from fifth in 2025. The primary concern for 63% of respondents revolves around the impact of climate change on business interruption risks, particularly supply chain disruptions due to extreme weather events.

Concerns about the physical impacts of climate change, such as damage to production sites from extreme weather (57%), and environmental risks like rising sea levels (40%) are also prevalent.

Political risks and violence have reached an all-time high in 2026, ranking No. 7 (15%), compared to No. 9 in 2025. Key fears in this category include war (53%), civil unrest (49%), and terrorism (46%).

“Shifting global alliances, the war in Ukraine, tariff wars, and rising xenophobia are contributing to the heightened perception of political risk and violence,” stated Srdjan Todorovic, Global Head of Political Violence and Hostile Environment Solutions at Allianz Commercial.

Macroeconomic developments ranked eighth (14%), down from seventh in 2025. Allianz anticipates that global momentum will be influenced by trade constraints, the rapid acceleration of AI, and a resurgence of industrial policy, predicting a fifth consecutive rise in global business insolvencies.

Fire and explosion have dropped to ninth place (13%) after holding the sixth position in the previous two years. Fire remains a significant cause of business interruption, particularly in sectors where critical components are geographically concentrated.

Market developments round out the top ten at No. 10 (13%), down from eighth in 2025. Businesses appear slightly more relaxed about market risks following a strong year for equity and M&A markets, although concerns about a potential AI bubble linger.

Methodology:

The 15th Allianz Risk Barometer reflects the views of 3,338 respondents from 97 countries and territories. Conducted among Allianz customers, brokers, and industry organizations, the survey included risk consultants, underwriters, senior managers, and claims experts in the corporate insurance sector. The survey was conducted in October and November 2025, focusing on large, mid-sized, and smaller companies across 23 industry sectors.

Topics
InsurTech
Cyber
Data Driven
Artificial Intelligence
Allianz

In 2026, cyber risk has once again been identified as the top global risk, according to the latest Allianz Risk Barometer. This concern ranks first across all regions and company sizes.

Artificial intelligence (AI) has made a significant leap, securing the No. 2 position, up from tenth place in 2025. This marks the most substantial rise in this year’s rankings. Both cyber and AI are now among the top five concerns for businesses across nearly every industry sector.

In addition to cyber and AI, respondents highlighted business interruption, changes in legislation and regulation, climate change, and geopolitical risks as their primary concerns for 2026.

Cyber has been recognized as the leading global risk for the fifth consecutive year, achieving its highest score yet, with 42% of respondents citing it as a concern. This risk is prevalent across all surveyed regions—Americas, Asia Pacific, Europe, and Africa and the Middle East—and is a primary concern for large (> $500 million annual revenues), mid-sized ($100 million to $500 million), and smaller companies (< $100 million).

The scope of cyber risk encompasses cyber attacks, including data breaches and malware/ransomware, as well as IT network disruptions and associated penalties.

Allianz emphasizes the growing reliance on a limited number of third-party suppliers for services like cloud computing and AI solutions, which poses significant risks. Recent attacks and outages have disrupted businesses, supply chains, and the broader economy.

“Digital infrastructure and technology are now critical to all businesses and their supply chains. Complex interconnected systems exist within organizations, third-party suppliers, and customers. As we have seen with recent incidents, a cloud outage, technical glitch, or malicious attack can have huge implications for a business’s ability to produce and sell its goods and services, with the effects rippling through supply chains,” stated Rishi Baviskar, Global Head of Cyber Risk Consulting at Allianz Commercial.

Artificial intelligence has surged to No. 2 (32% of responses) in this year’s Risk Barometer, marking its highest position ever, up from No. 10 in 2025.

The rapid ascent of AI in the rankings reflects both the risks associated with its use and its broader societal, political, and economic implications. Allianz notes that AI’s risks are interconnected with other top concerns, including cyber threats, political instability, macroeconomic shifts, and regulatory changes.

“Companies increasingly see AI not only as a powerful strategic opportunity but also as a complex source of operational, legal, and reputational risk. In many cases, adoption is moving faster than governance, regulation, and workforce readiness can keep up—pushing AI into the top tier of global risks for the first time,” explained Ludovic Subran, Chief Economist at Allianz.

Organizations are becoming more aware of the challenges associated with AI implementation, such as data quality issues, integration challenges, and a shortage of skilled talent. New liability exposures are emerging around automated decision-making, biased models, and uncertainty regarding responsibility for AI-generated outputs. Concerns about disinformation and deepfakes are also on the rise.

To mitigate the impact of increasing AI adoption, 49% of companies are focusing on education, retraining, and upskilling initiatives. Additionally, 45% are reshaping roles to emphasize adaptability and collaborative problem-solving, while 40% are replacing low-skilled roles with high-skilled ones.

When asked about potential “black swan” scenarios in the next five years, 19% of respondents expressed concern over breakthroughs in quantum computing that could render current encryption methods obsolete.

Business interruption has dropped to third place in 2026 (29%), after consistently ranking No. 1 or 2 for the past decade. Despite this shift, Allianz notes that business interruption remains a significant concern, as supply chains can be affected by other risks in the global top 10, including cyber threats, climate change, and geopolitical conflicts.

The past year has seen a rise in protectionist trade policies and tariff wars, creating uncertainty in the global economy. Regional conflicts, such as those in the Middle East and Ukraine, along with civil unrest in various countries, have further complicated the landscape.

Respondents identified global supply chain paralysis due to geopolitical conflict as the most plausible “black swan” scenario for business interruption in the next five years (51%). Additionally, mass social unrest and political instability impacting business continuity ranked fourth (29%). Despite these rising pressures, only 3% of respondents consider their supply chains to be “very resilient.”

To adapt, half of the respondents are exploring new markets and products, while 49% are renegotiating and diversifying their supply chains. Many are also streamlining operations to reduce costs and investing in advanced analytics and supply chain management software. Over a third (35%) are considering nearshoring and evaluating domestic manufacturing options.

Changes in legislation and regulation have maintained their position at No. 4 for the third consecutive year, with 26% of respondents identifying it as a top risk.

Allianz highlights that divergence in regulatory approaches is a defining risk for 2026, with major jurisdictions moving in different directions regarding digital/AI, prudential, and sustainability regulations. The U.S. is pursuing deregulation to lower business costs, while Europe aims to simplify regulations while upholding robust safety standards. Meanwhile, China seeks to foster innovation while maintaining state oversight.

“This divergence is fast becoming a critical driver of global risk: it fragments compliance expectations, reshapes competitiveness, and increases uncertainty at a time of geopolitical, technological, and financial volatility,” noted Subran.

Natural catastrophes have slipped to No. 5 (21%) globally, following two years in the third position, largely due to a quieter hurricane season. However, insured losses from catastrophic events still reached $100 billion for the sixth consecutive year, with significant losses stemming from the January 2025 wildfires in California.

Secondary perils, such as flooding and severe thunderstorms, continue to drive substantial losses. “These events demonstrate that losses from perils once considered secondary are now comparable to traditional ‘peak’ risks, with climate change amplifying both their frequency and severity,” stated Keerthy Mohandas, Catastrophe Risk Research Analyst at Allianz Commercial.

Climate change ranked sixth this year (19%), down from fifth in 2025. The primary concern for 63% of respondents revolves around the impact of climate change on business interruption risks, particularly supply chain disruptions due to extreme weather events.

Concerns about the physical impacts of climate change, such as damage to production sites from extreme weather (57%), and environmental risks like rising sea levels (40%) are also prevalent.

Political risks and violence have reached an all-time high in 2026, ranking No. 7 (15%), compared to No. 9 in 2025. Key fears in this category include war (53%), civil unrest (49%), and terrorism (46%).

“Shifting global alliances, the war in Ukraine, tariff wars, and rising xenophobia are contributing to the heightened perception of political risk and violence,” stated Srdjan Todorovic, Global Head of Political Violence and Hostile Environment Solutions at Allianz Commercial.

Macroeconomic developments ranked eighth (14%), down from seventh in 2025. Allianz anticipates that global momentum will be influenced by trade constraints, the rapid acceleration of AI, and a resurgence of industrial policy, predicting a fifth consecutive rise in global business insolvencies.

Fire and explosion have dropped to ninth place (13%) after holding the sixth position in the previous two years. Fire remains a significant cause of business interruption, particularly in sectors where critical components are geographically concentrated.

Market developments round out the top ten at No. 10 (13%), down from eighth in 2025. Businesses appear slightly more relaxed about market risks following a strong year for equity and M&A markets, although concerns about a potential AI bubble linger.

Methodology:

The 15th Allianz Risk Barometer reflects the views of 3,338 respondents from 97 countries and territories. Conducted among Allianz customers, brokers, and industry organizations, the survey included risk consultants, underwriters, senior managers, and claims experts in the corporate insurance sector. The survey was conducted in October and November 2025, focusing on large, mid-sized, and smaller companies across 23 industry sectors.

Topics
InsurTech
Cyber
Data Driven
Artificial Intelligence
Allianz