Ranked 1 Cyber activity


Cyber incidents (36% of overall responses) rank as the most important risk globally for the third year in a row and for the first time by a clear margin. It is the top peril in 17 countries, including Australia, France, Germany, India, Japan, the UK, and the USA. A data breach is seen as the most concerning cyber threat for Allianz Risk Barometer respondents (59%) followed by attacks on critical infrastructure and physical assets (53%).


The recent increase in ransomware attacks – 2023 saw a worrying resurgence in activity, with insurance claims activity up by more than 50% compared with 2022 – ranks third (53%).


“The growing number of incidents caused by poor cyber security, in mobile devices in particular, a shortage of millions of cyber security professionals, and the threat facing smaller companies because of their reliance on IT outsourcing are also expected to drive cyber activity in 2024,” explained Scott Sayce, Global Head of Cyber, Allianz Commercial.


According to research conducted by DNV, only 40% of maritime professionals think their organization is investing enough in cyber security at a time when vessels and other critical infrastructure are becoming increasingly networked and connected to IT systems.


Ranked 2 Business


interruption Despite an easing of post-pandemic supply chain disruption in 2023, business interruption (31%) retains its position as the second biggest threat in the 2024 survey. This result reflects the interconnectedness in an increasingly volatile global business environment, as well as a strong reliance on supply chains for critical products or services. Improving business continuity management, identifying supply chain bottlenecks, and developing alternative suppliers continue to be key risk management priorities for companies in 2024.


Ranked 3 Natural


catastrophes Natural catastrophes (26%) is one of the biggest movers this year and 2023 was a record-breaking year on several fronts. It was the hottest year since records began, while insured losses exceeded US$100bn for the fourth consecutive year, driven by the highest ever damage bill of US$60bn from severe thunderstorms.


Around the world, natural catastrophes is the number 1 risk in Croatia, Greece, Hong Kong, Hungary, Malaysia, Mexico, Morocco, Slovenia, and Thailand, many of which sustained some of the most significant events last year. In Greece, a wildfire near the city of Alexandroupolis in August was the largest ever recorded in the EU. Meanwhile, severe flooding in Slovenia resulted in one of the biggest supply chain events, causing production delays and parts shortages for European car manufacturers.


Ranked 4 Changes in legislation and regulation


Despite vows to reduce bureaucracy, companies will still face new rules and regulations in 2024 that will not only require a high administrative burden but could also impose restrictions on their business activities, ensuring changes in legislation and regulation (19%) rises one place to 4 in the 2024 survey.


In the case of shipping organisations, one has to look no further than the revised 2023 IMO GHG Strategy, which includes an enhanced common ambition to reach net-zero GHG emissions from international shipping close to 2050, a commitment to ensure an uptake of alternative zero and near-zero GHG fuels by 2030, as well as indicative checkpoints for 2030 and 2040.


Furthermore, the EU has expanded the scope of the European Union Emissions Trading System (EU ETS) to include the maritime sector starting this year. This move has been raising


104 | ISSUE 107 | MAR 2024 | THE REPORT


all sorts of reactions and thoughts on the implications for the shipping industry due to the challenges and opportunities it presents.


Ranked 5 Macroeconomic


developments Despite the ongoing uncertain global economic outlook, rising insolvency levels (global insolvencies are forecast to increase by +8% in 2024) and still high interest rates, macroeconomic developments (19%), which ranked 3 last year, falls to 5 in 2024.


Ranked 6 Fire and


explosion Ranking at 6 overall, fire and explosion (19%) is up from 9 last year. It is seen as a significant peril for companies and global supply chains, particularly where critical components are concentrated geographically and among a small number of suppliers. In the shipping sector, the transportation of lithium ion batteries, especially in electric vehicles, has been increasing due to a rise in demand. However, the transportation of such batteries poses a significant safety challenge. For instance, the Fremantle Highway, a ship carrying 3,000 cars, caught fire off the Dutch island of Ameland on 25 July 2023. The ship was loaded with 2,500 cars and heavy cargo, including nearly 500 electric cars. The Dutch media reported 3,783 new cars on board, making electric car batteries more difficult to extinguish.


Ranked 7


Climate change Climate change (18%) may be a non-mover year-on-year at 7 but is among the top three business risks in countries such as Brazil, Greece, Italy, Turkey, and Mexico. Physical damage to corporate assets from more frequent and severe extreme weather events is a key threat. The utility, energy and industrial sectors are among the most exposed.


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