An overall view on insurance risks for 2024 is always worth a look, especially from Allianz. Here’s the word;
Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies globally in 2024, according to the Allianz Risk Barometer. The closely interlinked peril of Business interruption ranks second. Natural catastrophes (up from #6 to #3 year-on-year), Fire, explosion (up from #9 to #6), and Political risks and violence (up from #10 to #8) are the biggest risers in the latest compilation of the top global business risks, based on the insights of more than 3,000 risk management professionals.
UK risk data
In the UK there are some notable differences to the global numbers, with a 10% downward swing in concerns about cyber risk (from 40% to 36%) as opposed to a global rise in concern about this risk (from 34% to 36%). In a sign that the risk environment may be diversifying in the UK, there was also a sharp drop in macroeconomic concerns, which fell by almost half from 34% to 18% between 2023 and 2024.
Instead other risks rose to the fore in the UK, where shortage of skilled workers was the fourth most significant risk for all businesses (proving a challenge for 21% of firms). Also uniquely important in the UK were political risks (a concern for 19% of respondents in the UK as against 14% globally) and the risks posed by new technologies (which were significant for 18% of UK respondents as opposed to just 9% globally).
Allianz Commercial Managing Director for the UK, Nadia Côté comments on the UK data: “The UK takes a different view on major risks to its global peers. While cyber is still the leading risk, concern about this and also about macroeconomic conditions have fallen over the last year. Instead an aligned group of other issues have risen to the forefront for business leaders. Shortage of skilled workers and the rising risk from new technologies such as AI bring together an increasing concern about a changing workplace and risks that group together in the D&O arena. Meanwhile, while the UK economy has stabilized, the political environment, coming into a UK election year with a change of government widely expected, is unsurprisingly a worry for business leaders.”
Allianz Commercial CEO Petros Papanikolaou comments on the global findings: “The top risks and major risers in this year’s Allianz Risk Barometer reflect the big issues facing companies around the world right now – digitalization, climate change and an uncertain geopolitical environment. Many of these risks are already hitting home, with extreme weather, ransomware attacks and regional conflicts expected to test the resilience of supply chains and business models further in 2024. Brokers and customers of insurance companies should be aware and adjust their insurance covers accordingly.”
Large corporates, mid-size, and smaller businesses are united by the same risk concerns – they are all mostly worried about cyber, business interruption and natural catastrophes. However, the resilience gap between large and smaller companies is widening, as risk awareness among larger organizations has grown since the pandemic with a notable drive to upgrade resilience, the report notes. Conversely, smaller businesses often lack the time and resources to identify and effectively prepare for a wider range of risk scenarios and, as a result, take longer to get the business back up and running after an unexpected incident.
Be the first to comment