Report Shows Cyber Top Global Business Concern
For the first time ever, cyber incidents ranks as the most important business risk globally, according to the ninth annual Allianz Risk Barometer report. The company surveyed more than 2,700 experts from 102 countries and 22 industry sectors on the top business risks for 2020.
Following cyber incidents, business interruption, which was the top risk in 2019, was the second most important concern. Changes in legislation and regulation, natural catastrophes, and market developments round out the top five.
Cyber risk is also the top concern in the United States, followed by business interruption and natural catastrophes.
“Cyber incidents has emerged as the top risk in the US, and this is no surprise,” said Bill Scaldaferri, CEO of Allianz Global Corporate & Specialty North America. “Increasing connectivity and sophistication of attacks have been driving up the frequency and severity of incidents for some time. Given that most cyber-insurance is written in the US, this risk will continue to influence the direction of our industry and encourage close portfolio reviews of silent exposures.”
The report demonstrates how quickly technology evolves and how it impacts the market. Seven years ago, cyber was ranked 15th, with only 6% of respondents naming it as a risk in their industry. This year, it was named by 39% of respondents. Business interruption had been the top concern for seven years before it moved to second this year.
The report can be viewed on the Allianz website.