- Natural catastrophes is the top risk for businesses in Malaysia for 2026, rising from #5 last year, according to the Allianz Risk Barometer. The past year has also been a significant one for accelerated adoption of Artificial intelligence (AI), which is reflected in its ranking as the biggest riser in the annual survey at #2, together with Business interruption which includes supply chain disruption.
- Globally and in Asia Pacific, the top risks are Cyber incidents, Artificial Intelligence (AI) and Business Interruption, with AI as the biggest riser in the survey.
- Allianz Commercial CEO Thomas Lillelund comments: “Following the volatility and uncertainty of 2025, businesses continue to face interconnected and highly complex risks in 2026’s fast-changing environment. Given the continuing rise of AI across society and industry, it is unsurprising that it is the big mover in the Allianz Risk Barometer. As well as bringing huge opportunities, its transformative potential and rapid evolution and adoption are also reshaping the risk landscape, making it a standout concern for firms of all sizes worldwide, alongside other more established threats.”
- Rafliz Ridzuan, Chief Underwriting Officer, Allianz General Insurance Company (Malaysia) Berhad, adds, “Weather events and disasters that were considered rare or historic in the past are now common occurrences which leaves communities with very limited reaction time, while a portion of the population remains unprepared or underestimates the risks. Governments in our region should be investing more in climate adaptation to minimize the impact, as well as enhancing resilience to such events in future.”
- Extreme weather events highlight the need for more preparedness and protection
- Natural catastrophes is the most significant concern for businesses in Malaysia. The floods in Malaysia affected more than 15,000 people in seven Malaysian states where low-lying villages in Kelantan, Perlis, and Kedah were submerged for days, leaving homes structurally damaged and families stranded. The scale of the disaster was evident in the rivers, where 10 major rivers reached dangerous levels by end November 2025. Losses incurred reached up to US$10.3 million, with the majority of the damage involving paddy crops.
Allianz Risk Barometer 2026: Natural catastrophes top the list of business risks in Malaysia
Singapore, 14 January 2026
• Over a third of respondents (38%) indicate Natural Catastrophes as the top risk; Artificial Intelligence (30%) a new entrant at #2 together with Business Interruption
• Other top risks include Changes in Legislation and Regulation, Climate Change, and Cyber Incidents (all 27%)
• The top risks globally and in Asia Pacific are Cyber, Artificial Intelligence and Business Interruption
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