Cyber incidents, including ransomware, data breaches, and IT disruptions, dominate the Allianz Risk Barometer 2025 as the top global business risk, capturing 38% of responses. This marks the fourth consecutive year of cyber-related issues leading the ranking. The growing reliance on technology and the rapid evolution of artificial intelligence (AI) are intensifying concerns worldwide.
“For many companies, cyber risk, exacerbated by rapid development of AI, is the big risk overriding everything else,” said Rishi Baviskar, Global Head of Cyber Risk Consulting, Allianz Commercial.
A Widespread Concern
Cyber risks now rank as the primary concern in North and South America, Europe, and Africa, and lead in 20 countries, including the US, Germany, and Brazil. It is also the leading risk for aviation and telecommunications industries, highlighting its universal impact.
The AI Factor
AI’s influence on cyber risk is significant. While AI enhances productivity, it also enables sophisticated cyberattacks. Criminals and nation-states are leveraging AI to breach systems, intensify ransomware threats, and spread misinformation. Baviskar emphasized the dual nature of AI: “AI can help mitigate risks and build resilience, but its misuse is a critical threat.”
Rising Costs of Cyber Incidents
Ransomware remains the top driver of cyber insurance claims, accounting for 58% of large losses in the first half of 2024. Data breaches are the most feared exposure for businesses, exacerbated by increasingly stringent data protection regulations. Allianz data reveals that non-compliance with these laws has tripled in claim value over two years.
Business Continuity at Risk
Cyber incidents are closely tied to business interruption, the second-ranked global risk. Outages such as the CrowdStrike incident in 2024, which caused losses exceeding $5 billion, underscore the vulnerabilities of interconnected IT and software supply chains.
“Disruptions like CrowdStrike remind us of the global implications of IT outages,” Baviskar noted. “As AI adoption grows, dependency on key technology providers will increase, amplifying risks.”
The Interplay with Other Risks
Cyber risks amplify or interlink with other high-ranking global threats, including natural catastrophes (#3) and regulatory changes (#4). These risks create a complex, interconnected landscape that demands a holistic risk management approach.
Broader Risk Landscape: Other Concerns in 2025
While cyber incidents dominate, other notable risks in the Allianz Risk Barometer include:
- Natural Catastrophes (#3): The fifth consecutive year of insured losses exceeding $100 billion highlights the increasing impact of climate-related disasters.
- Regulatory Challenges (#4): Stricter sustainability and AI regulations are a growing burden for businesses, particularly in Europe and the US.
- Climate Change (#5): Rising to its highest position ever, climate change reflects heightened awareness of its operational and financial impacts.
Other News: Cyber Insurance Market Soars to $91.22 Billion by 2031 – Report(Opens in a new browser tab)
