Cyberattacks are the leading risk factor to have a ‘major impact’ over the next 12 months, insurance buyers have warned.
According to an exclusive FT Commercial Insights study of global risks hitting businesses across the world, AI and cyber, financial risks, regulatory changes and geopolitical volatility were cited in a study as "major risks" for the year ahead.
Globally, the fear of a cyberattack or ransomware threat was ranked as the number-one business risk with a major or moderate impact to business lines across the rest of 2024 and into 2025.
For Europe including the UK, 72 per cent of respondents to the study among the world's biggest insurance buyers and risk officers cited cyberattacks as one of the top three risks, slightly behind financial risks at 78 per cent and geopolitical volatility, at 75 per cent.
Regulatory risk was ranked fourth for the UK and Europe, at 69 per cent likelihood to have a major or moderate business impact.
The effect of emerging technologies, such as AI, as a disruptor was ranked by UK and European companies as having a 65 per cent likelihood of a major or moderate business impact over the next 12 months.
The figures were compiled in the FT Commercial Insurance GIST 2024, a global survey conducted by FT Commercial Insights and shared with FT Adviser.
The effects of climate change and the need for financial companies to make the transition to carbon neutrality, as well as social unrest and demographic change were also cited as potential headwinds, issues which have been flagged in previous years as part of the FT Commercial Insights team's study.
But two particular concerns stood out in the study as being on the rise.
These were effects of emerging technologies and AI, and regulatory change.
Overall, according to the study, these saw double-digit rises on 2023's study.
Regulatory change as a concern rose from 60 per cent to 74 per cent over the year, while the impact of AI rose from 63 per cent to 73 per cent globally.
Reinsurer Swiss Re has been discussing the impact of AI as a rising threat. In a recent paper, Swiss Re wrote: "Cyber-attacks pose a serious threat to all organisations, and the threat is growing every day."
Commentators have spoken to FT Adviser recently about the fast-paced movement of the 'fifth industrial revolution' and its effect on financial services.
Kevin Sloane, senior policy adviser at trade body Pimfa, told FT Adviser last month that while AI remained an "exploratory opportunity for most firms", he said "the regulatory environment and clarity on where the responsibility and liability for any future instances of AI harm may fall are still not entirely clear".
As such, the importance of keeping businesses secure while exploring how to boost profitability through AI and cyber tech, has become higher up the agenda of owners and boards alike.
