Natural catastrophes have emerged as the primary concern for businesses in Malaysia for 2026, according to the Allianz Risk Barometer. This marks a significant rise from its previous position at number five last year. The survey also notes the accelerated adoption of Artificial Intelligence (AI), which has surged to the second spot, alongside business interruption, including supply chain disruptions.
Globally and across the Asia Pacific, cyber incidents, AI, and business interruption are the top risks, with AI noted as the most significant riser. Allianz Commercial CEO Thomas Lillelund commented on the evolving risk landscape, stating, “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.”
In Malaysia, recent floods have underscored the urgency of addressing natural catastrophes. Over 15,000 people were affected across seven states, with significant damage in Kelantan, Perlis, and Kedah. The disaster saw 10 major rivers reach dangerous levels by the end of November 2025, resulting in losses up to $10.3m, primarily impacting paddy crops.
Rafliz Ridzuan, Chief Underwriting Officer at Allianz General Insurance Company (Malaysia) Berhad, emphasised the need for increased climate adaptation efforts. “Weather events and disasters that were considered rare or historic in the past are now common occurrences,” he noted, urging governments to enhance resilience to future events.
As businesses navigate these challenges, the focus remains on preparedness and protection against both natural and technological risks.
