Cyber Resilience Rises, Supply Chain Threats Persist in 2025

Industry Insights from Next Move Strategy Consulting

In a rapidly evolving cyber threat landscape, Allianz Commercial’s 2025 Cyber Security Resilience Outlook highlights a dual reality: insured organizations are making significant strides in countering cyber-attacks, yet vulnerabilities in digital supply chains and sophisticated threats like ransomware continue to pose substantial risks. Released on September 24, 2025, in Singapore, this report underscores the critical need for integrated defenses to navigate an increasingly interconnected and volatile digital environment.

Strengthening Defenses Amid Persistent Challenges

Cyber-attacks have long exploited gaps in organizational preparedness, particularly through complex supply chains. Allianz Commercial, a leader in commercial insurance, draws on its claims data and industry trends to reveal a pivotal shift. Large insured companies are reducing the impact of cyber incidents through enhanced detection and response capabilities, though smaller firms and regions like Asia Pacific face ongoing resilience gaps. This report serves as both a progress marker and a strategic guide for businesses to address interconnected risks.

“Insureds are stopping attacks earlier, but supply chain vulnerabilities and evolving threats like double-extortion ransomware demand urgent attention,” says Michael Daum, Global Head of Cyber Claims at Allianz Commercial. “Early detection can reduce incident costs by up to 1,000 times compared to attacks that escalate to data theft or encryption.”

Key Insights at a Glance:

• Ransomware Dominance: Accounts for 60% of large cyber claims (>€1mn) in H1 2025, with 40% involving data exfiltration, doubling loss values compared to non-data theft incidents.

• Improved Resilience: Claim severity dropped by over 50% and large claim frequency by 30% in H1 2025, driven by large firms’ investments in cybersecurity.

• Supply Chain Risks: Persistent vulnerabilities in third-party ecosystems broaden the attack surface, especially in Asia Pacific, which saw 34% of global attacks in 2024.

• Retail Sector Exposure: Ranks among the top three industries for claims (9% by value), driven by high data volumes and business interruption risks.

• Non-Attack Incidents: Wrongful data collection and technical failures accounted for 28% of large claims by value in 2024, reflecting regulatory and operational challenges.

Dynamic Frameworks for a Shifting Threat Landscape

The Allianz report advocates for flexible, integrated approaches to cyber risk management. By combining endpoint security, supplier audits, and real-time monitoring, businesses can maintain visibility across complex networks. For smaller firms, particularly in Asia Pacific, closing resilience gaps through training and contractual safeguards is critical to countering ransomware and social engineering attacks.

With attackers shifting focus to less resilient mid-sized and small firms-where 88% of data breaches involve ransomware compared to 39% at large firms-the report emphasizes proactive measures like early detection and cross-functional collaboration to mitigate supply chain risks.

Impact on the Cyber Insurance Market: Next Move Strategy Consulting’s View

The interplay of improved defenses and persistent supply chain vulnerabilities is reshaping the cyber insurance market. Allianz’s findings highlight a growing emphasis on supply chain risk assessments in underwriting, encouraging tailored policies that reward robust cybersecurity practices. This shift fosters a more resilient insurance ecosystem, aligning coverage with real-world exposures and driving demand for solutions like multinational cyber policies, particularly for firms with operations in high-loss regions like Australia, the US, and the UK.

Industry Response and Strategic Outlook

The report has sparked significant interest among businesses navigating global supply chains, stricter privacy regulations, and rising social engineering threats. Its data-driven insights, drawn from 300 claims in H1 2025 and projections of 700 total claims for the year, offer actionable guidance for leaders aiming to integrate resilience into their operations. Retail, manufacturing (33% of claims by value), and professional services (18%) are particularly impacted, underscoring the need for sector-specific strategies.
Low penetration rates highlight untapped potential for coverage to support resilience, especially in Asia Pacific, where claims rose 22% in 2024.

Charting a Resilient Future

As ransomware, supply chain risks, and regulatory pressures intensify, Allianz Commercial’s 2025 Outlook points to a future where early detection, collaborative risk management, and comprehensive insurance solutions are paramount. With a seasonal uptick expected from Black Friday onward, businesses must act swiftly to close vulnerabilities.

Through this report, Allianz Commercial reinforces its commitment to equipping organizations with the insights and tools needed to stay ahead of threats and build enduring cyber resilience.

Source: Taiwan News 

Prepared by: Next Move Strategy Consulting