US businesses are being urged to reassess their risk strategies in light of emerging challenges identified in Marsh McLennan Agency’s 2025 Business Insurance Trends report.
Drawing from internal research and insights from its affiliates, the report outlined five trends that are expected to influence business operations and insurance planning in both the short and long term.
As organizations integrate more artificial intelligence and automation into their operations, digital risks continue to escalate. Cybersecurity remains a top concern, with cybercriminals leveraging advanced tools like AI-generated deepfakes to carry out fraudulent activities. Business email compromise (BEC) has also become increasingly prevalent, with the FBI’s Internet Crime Complaint Center reporting losses of nearly $55.5 billion between 2013 and 2023 from BEC incidents alone.
To address these threats, businesses must prioritize cybersecurity, implementing proactive measures like regular risk assessments, incident response plans and third-party vulnerability assessments.
According to Marsh McLennan Agency, climate risks are becoming more pronounced as extreme weather events increase in both frequency and intensity. In 2024, the National Oceanic Atmospheric Administration (NOAA) recorded $27 billion in weather events. This rise in climate-related risks directly affects property exposures, with businesses needing to enhance their resilience to both primary and secondary perils.
To mitigate climate-related risks, companies should assess their exposure to extreme weather events, implement preventive measures like flood protection and engage in scenario planning to anticipate future risks. Adjusting operational strategies to accommodate these challenges is becoming essential for long-term sustainability.
Economic challenges, including inflation, supply chain disruptions and geopolitical uncertainty, continue to impact businesses in 2025. Protectionist policies and disruptions in global trade flow have created instability for many organizations, according to the report.
For this risk, Marsh McLennan Agency advised businesses to conduct scenario planning, stress-test assumptions and maintain flexibility to navigate economic uncertainties. Expanding risk ownership across the organization and making data-driven decisions about capital allocation are also essential strategies to mitigate potential financial risks.
Another risk is the human element. The workforce in 2025 includes four generations, namely Baby Boomers, Gen X, Millennials and Gen Z, creating both opportunities and challenges. Each generation brings different values, work preferences and skills, making recruitment, development and retention more complex.
To manage this risk, the report said employers must focus on building inclusive workplace cultures, facilitating knowledge transfer between experienced and younger workers and addressing varying expectations around work arrangements.
Additionally, businesses need to prepare for potential risks related to workplace violence and security threats. Investment in comprehensive insurance solutions and crisis management plans can also help mitigate these risks, according to the report.
Finally, legal and liability risks are also evolving, with growing concerns about litigation, large verdicts and regulatory uncertainty. Mass torts, societal polarization and other factors contribute to the rising risks businesses face in terms of casualty and liability.
To address these concerns, Marsh McLennan Agency advised businesses to focus on compliance, safety and loss control programs, along with adequate insurance coverage. Monitoring regulatory changes and working with legal and risk advisors can help companies better manage potential legal risks and avoid costly liabilities, the company said.
Marsh McLennan Agency said these risk trends are interconnected and businesses must recognize their global and local implications. By focusing on these key areas, companies can strengthen their overall risk posture and ensure long-term sustainability.
