“In addition to cyber incidents as the top risk in India, the results from the Allianz Risk Barometer indicate a stronger link between climate change, natural catastrophes, and business interruption risks. As extreme weather events become more frequent, we expect this interplay to become even more intense and tightly woven in the coming years. This also has an impact on supply chain disruptions, such as in food supply, which in turn creates inflationary pressure which is present in the economy now.” CB Murali, CEO of Allianz Commercial India
Cyber incidents, which include data breaches, ransomware attacks, malware intrusion in cloud or main networks, and IT disruptions, similar to the CrowdStrike incident, are the top business risk in India for the eighth consecutive year, according to the Allianz Risk Barometer.
Once again, Business interruption(BI) is a main concern for companies of all sizes, ranking #2. Climate change is a top three risk, rising from #4 to #3.
Globally and in Asia, the top risks are Business interruption, Cyber incidents, and Natural catastrophes in this year’s Allianz Risk Barometer, which is based on the insights of more than 3,700 risk management professionals from 100+ countries.
Allianz Commercial Chief Underwriting Officer Vanessa Maxwell commented, “2024 was an extraordinary year in terms of risk management and the results of our annual Allianz Risk Barometer reflect the uncertainty many companies around the globe are facing right now. What stands out this year is the interconnectivity of the top risks.”
According to Maxwell, climate change emerging technology, regulation and geopolitical risks are increasingly intertwined, resulting in a complex network of cause and effect. Businesses need to adopt a holistic approach to risk management and consistently strive to enhance their resilience in order to address these fast-evolving risks.”
Christian Sandric, Regional Managing Director of Allianz Commercial Asia, says, “Business interruption is the most significant risk for companies in the region and this is no surprise as Asian economies are increasingly participating in trade globally and regionally.
This is also often due to events like cyber incidents or natural catastrophes, which are part of the top risks in the region. Against this backdrop of an increasingly volatile risk landscape, businesses should ensure they are sufficiently protected and their response measures robust.
This includes adopting measures such as loss prevention, developing multiple suppliers, alternative risk transfer, and multinational insurance policies.”
CB Murali, CEO of Allianz Commercial India, shares, “In addition to cyber incidents as the top risk in India, the results from the Allianz Risk Barometer indicate a stronger link between climate change, natural catastrophes, and business interruption risks. As extreme weather events become more frequent, we expect this interplay to become even more intense and tightly woven in the coming years. This also has an impact on supply chain disruptions, such as in food supply, which in turn creates inflationary pressure which is present in the economy now.”
Cyber risks continue to increase with rapid development of technology
Cyber incidents are the top risk in India for the eighth consecutive year and the country has experienced numerous cyberattacks, including the data breach of state-owned Bharat Sanchar Nigam Limited, malware attack on the All India Institute of Medical Science (AIIMS),ransomware attack on a governmental pension portal for defence personnel, and ransomware attack on a technology service provider which forced nearly 300 small Indian banks to halt payment services.
Furthermore, an Indian consumer tech company suffered a cyberattack which exposed the personal information of over 7.5mn customers, the cryptocurrency exchange WazirX was hacked, and the list goes on.
The country detected an average of over 700 cyberattack attempts per minute in 2024, with the healthcare industry being the top target sector, followed by hospitality, and banking.
According to projections, if left unchecked, India could attract nearly 1 trillion cyberattacks annually by 2033. The average cost of a data breach in India also reached an all-time high of $2.25mn in 2024, an increase of 9% from the previous year and 39% from 2020.
More than just economic loss, the cost of a data breach also includes operational downtime, lost customers, and reputational damage, among others.
Cyber incidents rank #2 in Asia, with 31% of responses. The Asia Pacific region saw a 23% increase in weekly cyberattacks per organization in Q2 2024, compared to the same period in 2023.
Globally, Cyber incidents (38% of overall responses) rank as the most important risk for the fourth year in a row – and by a higher margin than ever (7% points). More than 60% of respondents identified data breaches as the cyber exposure companies fear most, followed by attacks on critical infrastructure and physical assets with 57%.
Business interruption(BI) strongly interlinked with other risks Business interruption (BI) ranks #2 in India and it is strongly interlinked with other risks including Cyber incidents, Climate change and Natural catastrophes.
For example, cyber incidents are the top BI exposure companies fear most globally, according to the Allianz Risk Barometer. Another case in point is climate change contributing to more intense heatwaves, which affect not only the agricultural and health services sectors, but also impact construction workers and schools.
BI is the top risk in Asia, with 37% of responses. It ranks in the top three risks in all countries and territories, and is the top risk in China and Hong Kong, Malaysia, Singapore, and South Korea. Its persistence at the top reflects severe supply chain disruption during and after the pandemic.
Globally, BI has ranked either #1 or #2 in every Allianz Risk Barometer for the past decade and retains its position at #2 in 2025 with 31% of responses. BI is typically a consequence of events like a natural disaster, a cyberattack or outage, insolvency or political risks like conflict or civil unrest, which can all affect the ability of a business to operate normally.
Several examples from 2024 highlight why companies still see BI as a major threat to their business model. Houthi attacks in the Red Sea led to supply chain disruptions due to rerouting of container ships, while incidents such as the collapse of the Francis Scott Key Bridge in Baltimore also directly impacted global and local supply chains.
Supply chain disruptions with global effects occur approximately every 1.4 years, and the trend is rising, according to analysis from Circular Republic, in collaboration with Allianz and others. Those disruptions cause major economic damages, ranging up to 5% to 10% of product costs and additional downtime impacts.
Climate change reaches new high
Climate change ranks #3 in India, one of countries worst affected by the human-caused climate crisis. The world’s most populous nation is experiencing more intense heatwaves and rainfall. 2024 was the hottest year for the country since 1901. That summer, India recorded more than 40,000 suspected heatstroke cases and temperatures reached 52.3 degrees Celsius in Delhi in late May, the capital’s highest temperature on record. In June 2024, an observatory in New Delhi reported 228.1 millimeters of rainfall in a 24-hour period, the most recorded in a single June day for 88 years.
Globally, Climate change moves up two positions into the top five global risks at #5, its highest ever position in the 14 years of the survey. Physical damage and business interruption are the two major impacts of climate change that companies fear most, according to Allianz Risk Barometer respondents, given their potential effect on profitability,downtime, production or service delivery.