Allianz Risk Barometer finds familiar risks increase in importance

What a difference a year can make when it comes to tracking the risks impacting the insurance industry. The new 2026 Allianz Risk Barometer focuses on factors the insurance industry should be monitoring throughout 2026, and while cyber incidents have topped the list for five years in a row, it now ranks as the leading corporate concern in every region of the globe for all companies, regardless of size. 

The risks are changing, particularly as companies increasingly rely on third-party providers for data and other services, says Rishi Baviskar, global head of cyber risk consulting for Allianz Commercial in the report. "Large companies' investments in cyber security and resilience have been paying off, ensuring they can detect and respond to attacks early. However, cyber risk continues to evolve. Organizations are increasingly reliant on third-party providers for critical data and services, while artificial intelligence (AI) is supercharging threats, increasing the attack surface and adding to existing vulnerabilities." 

Cyber criminals have become extremely adept at identifying and exploiting system vulnerabilities like supply chains and even employees. "We are now seeing costly attacks on businesses and supply chains outside the U.S. and Europe, with notable incidents in Asia in 2025," adds Baviskar. According to an analysis by Allianz Commercial, ransomware is the leading risk in the cyber space, accounting for 60% of the cost of large cyber claims. 

AI risks rise to second place

While AI can be a valuable tool, it is also being used by bad actors to automate cyberattacks, which enables them to launch incidents more quickly and efficiently. It is also allowing individuals who might lack the technical skills to initiate attacks to do so with significant expertise. 

For these reasons and more, AI rose significantly in the ranking, going from number 10 in 2025 to number 2 in 2026 across all regions, but particularly in the Americas, Asia Pacific, Africa and the Middle East, and to number 3 in Europe, and is viewed as a growing risk for companies of all sizes. 

"Companies increasingly see AI not only as a powerful strategic opportunity, but also as a complex source of operational, legal and reputational risk," details Ludovic Subran, chief economist, Allianz, in the report. "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."

As AI becomes more embedded in company operations, there is an expectation that it will increase business risks and exposures. The survey identified three categories of AI-related risks: 

• Operational, which includes business interruption and errors that can cascade across a company's automated workflows
• Legal and compliance, encompassing the failure to comply with emerging regulations, liabilities from AI outcomes or sanctions arising from various government structures.
• Reputational, which involves damage to brands due to misinformation, unethical use of AI, data breaches and even biased decisioning that could affect customers and employees. 

Forty-four percent of respondents to the Allianz Risk Barometer see AI bringing more benefits than risks to their industry, but 19% say they see more risks than benefits. 

"There will be many opportunities with AI, but there is also huge uncertainty about the longer-term implications for employment, cybersecurity, regulation and geopolitics," says Michael Bruch, global head of risk consulting and advisory services with Allianz Commercial in the report. "There are also big questions about whether we are in an AI bubble. There are potentially huge opportunities for organizations to use AI, but it has yet to be proven whether the big investments and current business models of the large technology companies will pay off."

Business interruption risks drop slightly

There was a slight drop in business interruption and supply chain disruption as these risks went from second to third place in the ranking, however, they remain a major concern for businesses. As geopolitical risks place more strain on global supply chains, only 3% of respondents considered their supply chains "very resilient," and 35% are looking at opportunities for nearshoring and domestic manufacturing. 

"Historically, risks were managed in silos — climate, geopolitical, and cyber threats were often treated separately," explains Daniel Muller, head of emerging risk trends, Allianz Commercial in the report. "Today, that approach is no longer viable. Organizations must adopt an integrated resilience strategy that combines cyber defense, AI governance, supply chain diversification, climate adaptation, geopolitical monitoring, and crisis response. True resilience comes from connecting these capabilities into a cohesive framework."

Changes in legislation and regulation remained the number 4 risk in the Risk Barometer, but factors such as the tariffs and supply chain impacts are a concern, as well as the global adoption and regulation of artificial intelligence. 

The quieter hurricane season saw natural catastrophe risks drop from number 3 in 2025 to number 5 in 2026, and climate change dropped one slot to number 6. Coming in at number 7 were political risks and violence, rising two positions from ninth place last year. War perils played a large role in the change, particularly as boundaries in the Middle East shifted. 

Macroeconomic developments have seen a steady drop over the last few years in the Risk Barometer, and that trend continued in 2026, as they dropped one place to become the number 8 risk. "The message for businesses is clear: even as the global economy shows impressive resilience, the operating environment is becoming more volatile, more fragmented and more strategically contested," according to Subran in the report.

Fire claims and explosions also saw a positive drop from number 6 in 2025 to number 9 this year. While the degree of disruption and destruction from fires can be high, the report finds that prudent fire mitigation practices and preventative measures can lower overall fire losses. 

In the number 10 spot were market developments, which dropped one space from last year. It was a good year for mergers and acquisitions, and equity valuations are strong. In addition, AI continues to be a market force, and its rapid adoption is fueling expectations that it will drive productivity and growth in 2026.