Global insurer Allianz Commercial just released its annual Risk Barometer rankings, which identify the top business risks for the year ahead. Survey respondents include global Power and Utility risk experts. Here are the top three business risks in 2026 keeping industry executives up at night.
Business Interruption (BI) once again takes the top spot with 42% of Power and Utility respondents citing it as their leading business concern in 2026. It is no surprise that BI, which includes supply chain disruptions, leads the rankings as 2025 marked a shift towards protectionist trade policies and tariff wars that brought uncertainty to the world economy.
Global trade and supply chains are being reshaped in a world divided by geopolitics, protectionism and the effects of climate change. In the past year alone, trade restrictions have tripled to affect an estimated US$2.7trn of merchandise – nearly 20% of global imports – fueling trends such as friendshoring and regionalization.
Despite the lessons of the Covid-19 pandemic and geopolitical shocks, many companies are not confident in the resilience of their supply chains – only 3% of respondents rate their supply chains as “very resilient” in this year’s Risk Barometer. As risk becomes more complex and interconnected, all businesses, including Power and Utility companies, will need to take a more holistic approach to resilience.
Power and Utility respondents ranked Natural Catastrophes (35%) in second place this year. From the insurance perspective, economic and insured losses remained high, albeit lower than the 10-year average. The evolving nature of natural catastrophes continues to pose significant challenges to businesses and the (re)insurance industry. Insured losses from natural catastrophes are set to reach US$107bn for 2025, according to Swiss Re – the sixth year in a row they have exceeded $100bn, while economic losses are well in excess of $200bn.
The year got off to an active start, with the Palisades and Eaton wildfires in California. Economic losses for these are estimated to be $65bn, of which around $40.5bn were insured.
A close-to-average North Atlantic hurricane season undoubtedly helped moderate losses this year. Of the 13 storms that formed, only three made landfall and, for the first time in 10 years, no hurricane made landfall in the US. Hurricane Melissa, however, was a reminder of the devastation a single storm can cause.
Natural catastrophes related to extreme weather events should remain a fixture on the business risk radar:
Cyber Incidents, which includes cybercrime, IT network and service disruptions, ransomware, data breaches, fines, and penalties, comes in at #3 again this year for industry experts with 33% noting its threat to Power and Utility businesses.
The continued presence of cyber as one of the top 2026 perils reflects a deepening reliance on digital technology at a time when the cyber threat landscape, geopolitical and regulatory environments are fast evolving.
Of course, cybercrime is highly profitable, with groups operating on an industrial scale. According to the FBI, cybercrime losses in the US soared to a record $16.6bn in 2024, a 33% increase annually. Ransomware has evolved into a sophisticated ecosystem in which specialist groups known as initial access brokers gain unauthorized access to an organization’s systems, which they sell on to affiliates that carry out the attack and demand ransom payments.
Cyber criminals are adept at exploiting vulnerabilities in cyber security – such as supply chains and employees – as well as leveraging the impact of business interruption and the release of sensitive data to extract ransom payments.
According to cyber claims analysis, ransomware accounts for 60% of the value of large cyber claims (>€1mn) seen during the first half of 2025, while 40% of the value of large cyber claims seen during this period included data theft, up from 25% in all of 2024.
At the same time, attackers are also increasingly using AI to automate attack processes, which enables them to carry out more attacks, faster and more efficiently. AI is also lowering the bar for threat actors, making it easier for criminals who lack technical skills and ransomware expertise to execute attacks.
Power and Utility executives need to remain vigilant against the evolving risks impacting their businesses. Insurers, brokers and risk management experts are essential partners who can help companies mitigate threats and recover quickly when incidents occur.
Priscilla Pazmino-Vitela is the Head of Natural Resources for the Americas at Allianz Commercial.
