Business interruption is the biggest worry for companies in Asia Pacific in 2026, according to the latest edition of the Allianz Risk Barometer. The past year has also been a significant one for accelerated adoption of AI, which is reflected in its ranking as the biggest riser in the annual survey at #2. Changes in legislation and regulation, and market developments are also significant risks, ranking #3 and #4 respectively.
Globally and in Asia Pacific, the top risks are cyber incidents, AI, and business interruption (BI), with AI the biggest riser in the survey.
BI, including supply chain disruption, is the most significant concern for businesses in Asia, while the closely linked risk of changes in legislation and regulation – which include trade tariffs – ranks #3 (33%), driven by concerns over growing protectionism.
2025 marked a shift towards protectionist trade policies and tariff wars that brought uncertainty to the world economy.
Geopolitical risks are putting supply chains under increasing pressure, but as risks rise, just 3% of the survey respondents globally view their supply chains as “very resilient”. In the past year alone, trade restrictions have tripled to affect an estimated $2.7tn of merchandise – nearly 20% of global imports according to Allianz Trade – fueling companies exploring trends such as friendshoring and regionalization. These developments lead to a high-risk perception – 29% of respondents rank BI as a top peril, placing it at #3 globally, although it drops a position year-on-year.
AI creates emerging risks as well as new business opportunities
Ranking #2 in Asia Pacific, AI is a top three risk and biggest riser in Australia, China, Hong Kong, India, Malaysia, and Singapore, economies which are in the top 50% in terms of AI readiness. More than 90% of companies in the region are planning to scale up Generative AI over two years, with a focus on managing costs and lifting revenues.
Globally, AI has surged into the top tier of business concerns, rising to #2 (32%) in 2026 from #10 in 2025 – the biggest jump in this year's ranking. It is a big mover in all regions – ranked #2 also in the Americas, Africa and the Middle East, and #3 in Europe – and is a growing risk for companies of all sizes too, moving into the top three for large, mid-sized and smaller firms.
As AI adoption accelerates and becomes more deeply embedded in core business operations, respondents expect AI-related risks to intensify, especially when it comes to liability concerns. The rapid spread of generative and agentic AI systems, paired with their growing real-world use, has raised awareness of just how exposed organizations have become.
Natural catastrophes ranked #5 (22%) in Asia Pacific, and is a top three risk in Japan, Malaysia, Philippines, and Thailand. The region experienced several natural catastrophes in 2025, including the Myanmar Earthquake, Typhoons Matmo, Ragasa, and Bualoi, Cyclone Alfred, wildfires in South Korea, as well as floods in Malaysia and Thailand.
A delayed onset of the tropical cyclone season resulted in flooding and landslides, exerting a high human and economic toll in Asia where the insurance gap remains high at over 80%. According to research, there has been a significant increase in the intensity of tropical cyclones in recent decades, and these trends are linked to rising ocean temperatures and climate change, which retains its #6 ranking (19%) in the survey.
Businesses continue to face challenges on several fronts
Market developments such as intensified competition, mergers and acquisitions, and market fluctuation ranks #4 (26%), while macroeconomic developments such as inflation and monetary policies ranks closely behind at #5 (24%). Cyber incidents, such as cybercrime, IT disruptions, ransomware and data breaches, ranks #6 (20%). While these risks each dropped one ranking from last year, they continue to pose significant challenges to businesses in China.
Human health risk, such as a pandemic outbreak, as well as loss of reputation of brand value, including public criticism, are also new entrants in the survey, ranking joint #9 (11%).