FM has released the 2025 FM Resilience Index, an annual ranking of 130 countries and territories based on the resilience of their business environments.
The index, used by insurers, risk managers and businesses, now includes proprietary FM data to provide a more detailed assessment of cybersecurity risk, a growing concern in underwriting and risk management.
Denmark remains in the top position for the second consecutive year, supported by high productivity, an educated workforce and strong cybersecurity. These factors are among the 18 resilience-scoring measures in the index, which assess macroeconomic risks such as inflation and political stability, as well as physical risks including climate risk exposure and fire risk equality, which are key considerations for insurers assessing property risks.
The top 10 countries and territories in the ranking are Luxembourg at No. 2, followed by Norway, Switzerland, Singapore, Sweden, Germany, Finland, Belgium, and US Zone 3 (central US).
The index incorporates data from sources such as the International Monetary Fund and World Bank, alongside FM’s proprietary risk exposure analysis and improvement measures. These insights help insurers and businesses assess potential exposures and take steps to mitigate losses.
Leo Kushner, staff vice president and manager of business intelligence, said the FM Resilience Index, which incorporates data from the company’s property risk engineers, will help clients navigate the complexities of a rapidly changing world.
“Threats will continue to evolve, but so will opportunities to enhance resilience,” Kushner added. “The FM Resilience Index provides vital insights to manage those challenges and opportunities.”
For insurers, the index highlights regional differences in business resilience, offering valuable input for underwriting decisions and portfolio risk assessments. Countries that have improved their resilience may present lower overall risk profiles, while those experiencing declines may require more risk mitigation measures.
For the first time, the 2025 FM Resilience Index cybersecurity factor includes proprietary FM data. This is combined with data from the United Nations’ Global Cybersecurity Index to offer a more precise evaluation of cyber risk, which has become a major concern for insurers underwriting cyber liability policies.
With this update, proprietary FM data is now included in all six physical risk factors of the index, giving insurers and businesses greater visibility into potential threats. Cyber risk assessments are now a critical part of underwriting, and the updated index offers insights that can support risk selection and pricing strategies.
Qatar, Singapore, Greece, the United Arab Emirates and the US Zone 2 (western US) rank among the top 10 for cybersecurity. The lowest-ranked countries in this category were Nicaragua, Haiti and Tajikistan, highlighting elevated cyber risk exposure that insurers must factor into coverage decisions.
The 2025 FM Resilience Index is an interactive tool that helps global insurers, brokers and risk managers make informed decisions regarding risk selection, coverage pricing and loss mitigation strategies. Insurers can use the index to evaluate country-level risks when underwriting property, business interruption and supply chain coverage.
Countries ranked in the top 50 of the index, which is validated by real-world property loss data, recover from property losses over 30% faster on average, compared with lower-ranked locations.
Stakeholders monitoring risks in specific countries can use the index for decision-making. For instance, businesses operating in regions with significant changes in logistics risk can consider FM’s business risk consulting services. Climate risk data from the index can inform insurance coverage for extreme weather events, while the new cybersecurity data can assist insurers in evaluating cyber policy exposures.
By integrating proprietary risk data with third-party economic indicators, the FM Resilience Index provides insurers and risk managers with a comprehensive view of the risks affecting global business resilience.
