How smart businesses protect against key risks in today's market

From cybercrime and climate change to shifting trade flows and regulatory reform, the next 12 months present a complex risk landscape for organisations on both sides of the Tasman. This article examines some of the key issues likely to influence board agendas as we approach 2026 and their implications for business resilience.

Insurance premiums across Australia and New Zealand have eased in 2025, offering businesses a rare opportunity to negotiate better terms and secure broader cover. Yet beneath this softening market, the risk landscape remains as challenging as ever. From cybercrime and climate change to shifting trade flows and complex regulatory changes, the next 12–18 months will test organisational resilience in both countries. Understanding these risks is critical as exposure to them can quickly erode the benefits of lower premiums. Let’s examine the key risks that could undermine resilience.

Cybercrime

Cybercrime continues to dominate as the leading corporate risk in the region. In Australia, more than 87,000 cybercrime reports were lodged in FY 2023–24 (approximately one every six minutes), while in New Zealand, fraud has emerged as the fastest growing crime, accounting for almost a third of all recorded cases.

Losses from cyber enabled scams in New Zealand reached NZ$25 million in 2024, marking a 40% increase from the previous year. The rise of AI-driven phishing, deepfake impersonation and compromised software supply chains means that both nations face a more sophisticated and rapidly evolving threat environment than ever before.

Climate change

This is also leaving its mark on both sides of the Tasman. Australia’s State of the Climate 2024 report warns of longer bushfire seasons, heavier rainfall event and record breaking heatwaves, all of which place stress on infrastructure and business continuity.

In New Zealand, this year’s winter floods caused widespread damage to farms, transport links, and communications, resulting in hundreds of insurance claims and underscoring the vulnerability of key industries to extreme weather. For businesses in both countries, climate resilient infrastructure and realistic continuity planning are becoming nonnegotiable.

Regulatory change

It’s reshaping compliance expectations across both regions. Australia has introduced mandatory climate related financial disclosures for large entities from 1 January 2025 and is moving forward with significant privacy reforms that expand enforcement powers. In New Zealand, debate over the Regulatory Standards Bill has underscored the unpredictability of the legislative environment, adding complexity to long term compliance planning.

Finally, both countries are grappling with a convergence of organised crime, insider threats, and talent shortages. While New Zealand retains a reputation for low corruption, incidents at border control points and rising organised crime activity are a growing concern. In Australia, persistent skills gaps, particularly in cyber, data and risk functions, are being exacerbated by the unregulated adoption of AI, which can create new compliance and intellectual property risks.

Despite the welcome relief of an approximate 11% average fall in insurance rates across the Pacific over the past year, underwriters continue to evaluate each organisation on their own unique exposures. Those who invest in proactive risk management and climate resilience will be best positioned to lock in the benefits before market conditions inevitably shift again.

In a market where premiums are softening but risks continue to grow, smart businesses act now. Contact us today to see how our tender process can help you secure stronger cover, drive savings and build resilience against the challenges ahead.