Cyber incidents, artificial intelligence (AI) and business interruption continue to dominate the UK risk agenda, according to the Allianz Risk Barometer 2026.
1. Cyber Incidents — The UK's Leading Corporate Threat
Cyber incidents remain the number-one business risk globally for the fifth consecutive year. The NCSC responded to 204 significant cyber incidents in the 12 months to September 2025. High-profile attacks on Marks & Spencer, the Co-op and Jaguar Land Rover show how quickly cyber events trigger operational shutdowns. Average cost of a major cyber attack: nearly £195,000, equating to £14.7bn in annual economic impact. 43% of UK businesses experienced a cyber incident in 2025.
Regulatory response: the Cyber Security and Resilience Bill (2025) introduces mandatory breach reporting within 24 hours, followed by a detailed report within 72 hours. The Government Cyber Action Plan (GCAP) launched January 2026. UK cyber sector contributes £13.2bn annually, employing 67,000+ people.
Third-party dependency risk: over three-quarters of organisations rely on cloud services, yet just three global providers control more than 60% of cloud infrastructure.
2. Artificial Intelligence — A Rapidly Rising Risk
AI has surged to become the second-highest business risk in the UK, cited by more than half of respondents — more than double the previous year. Key concerns: bias and data quality, system reliability and model drift, IP challenges, ethical design, compliance with the EU AI Act and forthcoming UK assurance standards.
Many UK organisations plan to increase AI investment by over 30% in 2026, but 90% struggle to scale AI pilots and 62% face critical AI-related skills shortages.
3. Business Interruption — Digital Failures Driving Disruption
The ransomware attack on Jaguar Land Rover halted production and affected more than 5,000 suppliers, with estimated losses of £2.1bn. Only 3% of organisations consider their supply chains "very resilient." Businesses are adopting real-time digital supplier monitoring, scenario-based resilience testing, supplier diversification, and updated continuity plans.
A Shift Toward Integrated Resilience
Cyber risk, AI exposure and business interruption are now deeply interconnected. As London-based insurance specialists, we see growing demand for solutions combining cyber protection, operational resilience and technology-driven risk insights.
Source: Allianz Risk Barometer 2026 (allianz.co.uk)