Cyber incidents pose the greatest threat to businesses in the Philippines for 2025, driven by the rising frequency and severity of data breaches and IT disruptions, according to a new report by Allianz.
The German insurer's Allianz Risk Barometer 2025, released Wednesday, Jan. 15, revealed that Filipino businesses are increasingly concerned about cyber threats.
“For many companies, cyber risk, exacerbated by the rapid development of AI, is the biggest risk overriding everything else,” said Rishi Baviskar, Global Head of Cyber Risk Consulting at Allianz Commercial.
Cyber incidents, including data breaches and IT disruptions, are expected to be the top risks for businesses in the country in 2025. These are increasingly viewed as critical vulnerabilities across various sectors.
Allianz Commercial noted the significant rise in data breach-related losses within cyber insurance claims, primarily driven by ransomware attacks coupled with data exfiltration.
“A rise in ransomware attacks, including data exfiltration, is a consequence of changing attacker tactics and the growing interdependencies between organizations sharing ever-larger volumes of personal records,” said Michael Daum, Global Head of Cyber Claims at Allianz Commercial.
Daum also cited the rise in "non-attack" data privacy lawsuits, often stemming from issues like improper data collection or processing.
“The evolving regulatory and legal environment has brought an uptick in so-called ‘non-attack’ data privacy-related class action litigation, resulting from incidents such as wrongful collection and processing of personal data – the share of these claims has tripled in value in just two years,” he added.
The report also highlighted business interruption as a major concern, ranking it second globally and identifying it as the top risk in the Asia Pacific region.
Business interruption often stems from supply chain disruptions, emphasizing the need for companies to strengthen their resilience against unforeseen events.
Natural catastrophes remain a major risk for the Philippines, given its vulnerability to natural disasters. The report ranked natural catastrophes as the third most important risk globally, reflecting ongoing concerns about extreme weather events and their potential impact on business operations.
Despite dropping slightly in ranking, political risks and violence remain relevant in the country, particularly in the context of civil unrest and geopolitical instability.
According to Allianz, companies are increasingly wary of how political factors can disrupt their operations.
Climate change has risen to fifth position in the global ranking, underscoring the growing awareness of its potential impacts. For the Philippines, which faces severe consequences from climate change, businesses are urged to implement strategies for climate resilience, including adapting to extreme weather and regulatory changes.
The report noted that companies in the Philippines are focusing on developing resilient supply chains, enhancing insurance protections, and creating contingency plans to mitigate the effects of these identified risks.