- More than two thirds (69%) of risk managers expect investment in risk management to rise.
- Less than half (48%) believe current models adequately capture how risks interact.
- 94% believe that businesses are underestimating the impact of cascading risks.
- Cyber threats and AI-enabled fraud are the strongest risk combination, with 55% of risk managers linking the two.
- 50% say coordinating across teams is the biggest challenge during complex disruptions.
London, UK: (6 October 2026) - Businesses are investing more in risk management in response to a more complex and unpredictable risk environment, but many remain unconvinced that their organisations are prepared for the interconnected nature of today's risks, according to new research from global specialty insurer Hiscox.
The newly launched Hiscox Risk Report 2026: Risk in motion found that 69% of organisations expect to increase risk management investment over the next 12 months. However, less than half (48%) believe their current models adequately capture how risks are connected, exposing a clear gap between investment and capability.
The disconnect comes as risks become more closely linked – from cyber attacks and AI-enabled fraud to economic instability and workforce disruption. More than half (51%) of risk managers said they now regularly face multiple risk simultaneously, while 27% frequently see one event trigger another. Almost two thirds (65%) believe risks are more closely linked than five years ago, and 94% believe businesses still underestimate the impact of cascading risks.
As the most influential risk within the wider ecosystem, cyber risk sits at the centre of many of these chain reactions, acting as a catalyst for wider disruption across workforce, operational, economic and technology risks. While more than half (56%) of risk managers say interconnected risks are more disruptive than recurring individual threats, cyber resilience is becoming increasingly important because cyber incidents can trigger disruption across multiple areas of a business.
The challenge is not simply understanding interconnected risks but responding to them. Half (50%) of risk managers said coordinating across teams, functions and insurance policies is their biggest challenge when multiple risks emerge simultaneously, while 84% believe siloed business units slow response times during periods of interconnected disruption. This suggests that organisational structures may be struggling to keep pace with the increasingly connected nature of risk.
Kate Markham, Hiscox London Market CEO, said: “Our research highlights a growing resilience gap. While organisations are investing more in risk management, many still lack the structures, visibility and capabilities needed to understand how disruption spreads across their operations. Closing that gap is not simply about spending more. It requires moving beyond viewing risks in isolation and developing a clearer understanding of how threats interact, amplify one another and create wider business impacts. Insurance companies therefore have a critical role to play, not only by providing financial protection after a loss, but also by helping organisations strengthen resilience and manage interconnected risks before disruption occurs.”
ENDS
For further information please contact:
Carmel McCarthy, Global Media Relations Lead
+44 (0)7769 280903
Lucy Hensher, Head of External Communications
+44 (0)7824 996 370
Notes to editors
Report methodology
Findings are based on research conducted by Wakefield Research with 800 risk managers at multinational companies in the following markets: Australia, Canada, Denmark, Finland, France, Germany, Japan, Norway, Sweden, UK and USA, between February 20 and March 3, 2026.
About The Hiscox Group
Hiscox is a global specialty insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). With roots dating back to 1901, 2026 marks 125 years of Hiscox and we are proud of our long heritage in insuring specialist and complex risks. Our ambition is to continue to be among the world’s most respected specialist insurers, with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,000 people in 13 countries and has customers worldwide. Through our retail businesses in the USA, UK and Europe, we offer a range of specialist insurance products in commercial and personal lines. Internationally traded, bigger-ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.
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