Japan Cyber Risks Surge: 27% Hit by Losses Expose Insurance Coverage Shortfalls – Aon 2025 Survey Insights

Japan’s cyber threats reveal major insurance vulnerabilities, with 27% of businesses suffering losses according to Aon’s latest findings. Data breaches and cyberattacks dominate as the primary concern for Japanese companies, mirroring the global picture in the 2025 Global Risk Management Survey.

Released in early 2026, Aon’s 2025 Global Risk Management Survey: Japan’s Evolving Risk Landscape draws from responses by risk managers and executives worldwide, spotlighting Japan’s unique challenges. Cyber incidents top the list of current and future risks in Japan, just as they do internationally.

Key Cyber Risk Statistics in Japan:

• 27% of surveyed organizations faced actual cyber-related financial impacts.
• While 75.9% implement basic mitigation steps, a mere 12.6% maintain dedicated business continuity strategies for cyber events.
• Only about 27.2% have performed formal cyber risk assessments, and 22.3% possess structured risk management frameworks.

These deficiencies highlight significant exposures in insurance programs. Inadequate planning can lead to denied claims, underinsured losses, or coverage disputes when incidents occur. As a result, Japanese firms are prioritizing enhanced cyber defenses—investing in advanced technical safeguards, incident response protocols, and tailored cyber insurance policies that better match rising threat levels. Many are also adjusting policy sub-limits, exclusions, and overall capacity to align with heightened exposures.

Beyond cyber issues, supply chain interruptions rank second among Japan’s top risks. Heavy dependence on overseas raw materials, components, and energy sources amplifies vulnerabilities from geopolitical conflicts, logistics bottlenecks, and extreme weather. Businesses are responding by diversifying suppliers, exploring nearshoring or reshoring options, and scrutinizing contingent business interruption and trade credit insurance arrangements.

Natural catastrophes—including earthquakes, typhoons, and flooding—persist as a critical threat, disrupting manufacturing hubs, transport networks, and power infrastructure. Organizations are shifting toward fortified site-level protections, diversified operations across multiple locations, and comprehensive multi-site property and business interruption coverage to handle widespread or simultaneous events.

Additional pressures stem from persistent labor shortages and the need for specialized expertise. Firms are ramping up training initiatives and talent development to reduce operational vulnerabilities. Insurers, meanwhile, are evaluating how workforce gaps might amplify business interruption durations or third-party liability claims.

Overall, 83% of Japanese respondents noted escalating costs for insurable risks, prompting comprehensive portfolio reviews. Companies are reevaluating coverage scopes, limits, and terms across cyber, property, supply chain, and casualty lines to build greater resilience amid converging threats.

These trends underscore the urgency for proactive risk transfer strategies in Japan’s dynamic environment.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.