Companies increasingly worry about the unpredictable business environment where markets are volatile and political perils, such as terrorism, are on the rise, according to the Allianz Risk Barometer 2017.
The report revealed that business interruption remains the biggest concern for companies, named as an issue by 37 percent of survey respondents. This is followed by market developments, such as volatility and market fluctuation, cited by 31 percent, and cyber incidents, named by 30 percent.
Business interruption also ranked as the top concern in France, Spain, Italy, Canada and the US.
According to Chris Fischer Hirs, CEO of Allianz Global Corporate & Specialty, companies worldwide are bracing for a year of uncertainty.
Fischer said: “Unpredictable changes in the legal, geopolitical and market environment around the world are constant items on the agenda of risk managers and the C-suite. A range of new risks are emerging beyond the perennial perils of fire and natural catastrophes which require re-thinking of current monitoring and risk management tools.”
Cyber risk jumped up the ranking to reach the second biggest concern in the US and Spain and Austria, from second, third and fifth place in the 2016 survey, respectively.
The impact of cyber incidents emerged as the top concern for businesses in the UK for the second year in a row.
A release on the report said: “At the same time, it is the top concern globally for businesses in the information and telecommunications technology and the retail/wholesale sectors.”
The report also found that natural catastrophes and climate change rank high on the agenda for businesses this year, particularly in Asia. Catastrophe such as storms, floods and earthquakes emerged as the top concern in Japan and Hong Kong, highlighted as a concern by 55 percent and 35 percent, respectively.
According to Axel Theis, board member of Allianz SE, natural catastrophes and climate change “worry our customers and society at large”.
Theis commented: “We must assume that global warming above 1.5°C would intensify climate damages, for example from heat waves and rising sea levels, significantly. It is our task as an insurer to develop solutions for these scenarios and establish prevention and insurance protection for, and together with, our customers and public partners.”
