Kathmandu. Increasing cyber risks, data privacy regulations and asset risks are driving Indian companies to increase their use of insurance and risk transfer tools.
According to Aon’s 2025 Global Risk Management Survey, a global reinsurance group, cyber attacks and data breaches will be the top risks for Indian firms in 2025. The survey included nearly 3,000 executives from 63 countries.
Stricter regulations in India and abroad have also raised concerns about data privacy standards and non-compliance. India has reported more instances of property damages, exchange rate fluctuations and trade disruptions than other Asian markets.
Indian companies have said that they have significant financial losses associated with the main risks they insure. About 78 per cent of respondents said they had suffered losses due to property damage. Another 46 per cent said they had suffered losses due to trade disruptions.
Exchange rate fluctuations affected 64 percent of the companies. Cash flow pressures and talent problems also led to losses for nearly half of respondents.
In response, many companies said they were formalizing their insurance and risk management practices. 70 per cent now have dedicated risk and insurance departments. Similarly, a majority of 65 percent have measured the total cost of their insurance risk by focusing on rising insurance costs.
More than 90 per cent of those surveyed said they were conducting a formal review and planning for cyber and asset risks.
The use of captive insurance is increasing. About 92 percent of respondents said they are considering captives to improve financial resilience and support risk transfer. ’
Indian businesses are projected to remain at the top of the cyber risk list by 2028. Risks associated with artificial intelligence (AI) are emerging as a major concern.
Economic downturns, trade disruptions and climate-related risks could also impact insurance needs and pricing in the coming year, the AON report noted.
