Allianz reveals biggest Australian business risks

New research from Allianz has identified business interruption as the biggest risk facing Australian businesses as cyber insurance continues its rise to prominence.

The Allianz Risk Barometer 2017 revealed the 10 biggest risks Australia and the rest of the world face in 2017. Market developments and cyber incidents rounded out the top three of both rankings.

The meteoric rise of cyber insurance should remind brokers to brief clients across all industries as only  four years ago, the risk of cyber incident ranked 15^th.

Compared with the global average, Australia ranked new technology as a high risk in the report based on a survey of more than 1,200 risk experts from 55 countries.

For brokers, the report offers an insight into the risks facing clients over the coming year, Nicholas Scofield, general manager corporate affairs at Allianz, told Insurance Business.
“Different businesses have different risks,” Scofield said.

“The report enables brokers, when they are dealing with clients in different sectors, to say to clients these are the top half a dozen risks that face a business like yours and let’s have a conversation about how well insured you are for these sorts of risks.”

Human error was the only new entrant into the top 10 risks in Australia. As another risk that overlaps cyber, it will be important for brokers to stress to clients the importance of continuous training as a line of defence against breaches.

Scofield also highlighted the rise of changes in legislation and regulation, from seventh last year to joint fourth this year, as a key risk to watch for in the insurance industry. With a Senate enquiry in the offing, the insurance industry remains in the Government spotlight and developments will need to be monitored.

The top 10 Australian business risks 2017:

1. Business interruption
2. Market Developments
3. Cyber incidents
4. Changes in legislation equal with Macroeconomic developments
6. Natural catastrophes
7. Loss of reputation or brand value
8. New Technologies equal with Human error
10. Fire, explosion

The top ten global business risks 2017:

1. Business interruption
2. Market developments
3. Cyber incidents
4. Natural catastrophes
5. Changes in legislation and regulation
6. Macroeconomic developments
7. Fire, explosion
8. Political risks and violence
9. Loss of reputation or brand value
10. New technologies

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