A new survey from Gallagher, a global insurance brokerage and consulting firm, reveals that U.S. business owners are taking significant steps to shield their operations from a wide range of external threats. The survey, conducted between March 21 and April 2, 2025, sampled 1,000 U.S. business owners and offers a data-driven look into the concerns and actions of businesses navigating current risk environments.

High Levels of Concern Around Cyberattacks and AI

According to the report, cyberattacks top the list of concerns for U.S. business owners, with 72% expressing strong concern about the impact of such events in the coming year, up from 69% in 2024. In response, 36% of respondents stated an intent to either acquire or increase insurance coverage for cyber risks.

Concerns about artificial intelligence (AI) have also grown, with 93% of respondents reporting at least some level of worry about its potential effects on their businesses, compared to 85% the previous year. Nearly all business owners surveyed agreed that stronger regulation (95%) and protection (90%) surrounding AI are necessary. Despite concerns, 46% of respondents plan to increase investment in AI to enhance operations.

Supply Chain Resilience in Focus

Disruptions in supply chains remain a pressing issue, with 69% of respondents expressing concern, an increase from 68% in 2024. To address potential vulnerabilities, business owners are adopting various technologies:

• 40% are investing in artificial intelligence and machine learning to improve supply chain forecasting and responsiveness.
• 37% are leveraging supply chain automation.
• 37% are turning to cloud computing.

Additionally, 75% of business owners have contingency suppliers in place, a proactive move to minimize the impact of unexpected disruptions.

Insurance Claims and Coverage Gaps

The study also explored insurance usage trends. Among U.S. business owners with insurance coverage, 87% reported filing a claim in 2024. A majority of those claims (73%) were valued at $25,000 or more. The types of coverage most frequently used included:

• Property insurance (29%)
• Employment practices liability (28%)
• Cyber insurance (27%)
• Flood insurance (27%)

Weather-Related Risks Prompt Relocation and Fortification

Severe weather ranks equally with supply chain and cyber threats in concern levels, cited by 69% of respondents. In light of this, 57% of business owners have considered relocating or upgrading their facilities to better withstand extreme conditions. Among those considering relocation:

• 44% would move within the same state.
• 44% would move to a different state.
• 11% would consider relocating to a different region entirely.

Flooding stands out as a specific concern, identified by 35% of business owners as a threat to either their own operations or their suppliers. However, only 30% currently have flood insurance. Of those with flood insurance, 71% have filed at least one claim, and 27% have filed multiple claims. Among those currently without flood coverage, 80% said they are likely to purchase it within the next year.

Following claims related to weather events, respondents have taken additional steps to protect against future incidents. Reported actions include safeguarding against:

• Floods (40%)
• Fires (39%)
• Wind damage (37%)
• Hurricanes (32%)
• Hailstorms (31%)

Methodology

The survey was conducted online by Wakefield Research between March 21 and April 2, 2025. It involved 1,000 U.S. business owners and maintains a 95% confidence level with a margin of error of ±3.1 percentage points.

About Gallagher
Gallagher (NYSE: AJG) is one of the world's largest insurance brokerage, risk management and consulting firms. As a community insurance broker and trusted local consultant, we help people and businesses move forward with confidence. With more than 56,000 people working around the globe, we are connected to the places where we do business and to every community we call home. Managing risk with customized solutions and a full spectrum of services, helping you foster a thriving workforce, and always holding ourselves to the highest standards of ethics to help you face every challenge - that is The Gallagher Way. https://ajg.com Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

A new report released by The Hanover Insurance Group, Inc. reveals a notable gap between homeowners’ awareness of home risk prevention tools and their actual implementation. The 2025 Hanover Home Report: Loss Prevention, based on a survey conducted by The Harris Poll, shows that while many American homeowners recognize common risks to their property, far fewer take action to prevent potential damage.

The survey, conducted in March 2025 among 1,111 homeowners, focused on three major risk areas: water damage, structural safety, and fire prevention. Respondents were asked about their familiarity with relevant safety technologies and the preventative steps they’ve taken.

Water Damage Prevention

Non-weather-related water damage remains a leading cause of insurance claims. According to the report:

• 79% of homeowners are aware of water sensors.
• 76% are familiar with automatic water shutoff devices.
• However, only 16% have installed water sensors or confirmed their presence in their homes.
• Just 13% have installed or verified the presence of automatic water shutoff devices.

Structural Safety

Damage from wind and hail is also a frequent source of claims. The report found:

• 61% of respondents know about fortified roofing materials.
• 59% are aware of wind-rated garages.
• Despite this, only 17% have upgraded their roofs with fortified materials.
• Only 10% have installed or verified wind-rated garages.
• However, the percentage of homeowners who checked their roof condition within the past year increased from 38% in 2024 to 57% in 2025.

Fire Prevention

Home fire-related incidents are among the most financially damaging. Awareness levels for fire safety tools are high:

• 99% of homeowners are aware of smoke detectors.
• 97% are aware of fire alarms.
• Yet only 67% have installed or confirmed the presence of smoke detectors.
• 62% have cleaned dryer vents in the past year.
• 57% have serviced HVAC systems or changed filters within the last 12 months.

Recommendations for Homeowners

The report includes several recommendations to help reduce risks and potential losses:

• Install water sensors and automatic shutoff devices: These tools are cost-effective and can prevent extensive water damage.
• Conduct regular inspections: Annual checks of roofs, HVAC systems, and water heaters can identify issues before they escalate.
• Perform routine maintenance: Cleaning gutters and trimming trees may help prevent damage during storms.
• Enhance fire safety practices: Routine cleaning of dryer vents and installation of smoke detectors are key measures.

Industry Commentary

While the report does not make specific predictions, it includes commentary from Daniel C. Halsey, president of personal lines at The Hanover, who noted that "as weather becomes more severe and risks evolve," homeowners increasingly need to take proactive steps to protect their homes.

The report suggests that more work is needed to help homeowners move from awareness to action when it comes to home safety.

About the Study

The survey was conducted online in the United States from March 25–27, 2025, with a sample of 1,111 adults aged 18 and older who own a home. The data carries a margin of error of ±3.6 percentage points at a 95% confidence level.

For further details or to access the full report, visit hanover.com.

Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

A new study from the Global Workforce Intelligence (GWI) Project, titled Intelligent Adaptation in Insurance – Predicting the Unpredictable, highlights wide disparities in how prepared insurance organizations are for the disruptions brought on by Generative AI. The report presents a detailed analysis of workforce skill gaps and strategic responses across the $10 trillion global insurance market.

Rising Protection Gaps Underscore Industry Risk

The insurance sector is under mounting pressure as the global protection gap—defined as the shortfall between economically beneficial insurance coverage and the actual coverage in place—continues to widen. In 2022, the protection gap stood at $181 billion. This increased sharply to $262 billion in 2023, with 2024 losses projected to surpass those figures and trend significantly above historical norms. Much of the increase is attributed to a rise in natural disasters, posing new challenges to an already strained industry.

Workforce Skill Gaps in the AI Era

According to the GWI Project’s research, conducted in partnership with talent intelligence platform Eightfold AI, insurance professionals across core functions such as sales, IT, product development, and claims management are facing critical skill shortages. The report notes that traditional strengths in sales and marketing, such as customer service and sales management, are becoming increasingly commoditized due to the rise of digital marketing funnels and AI-driven automation. The study emphasizes that the ability to continually upskill, adapt, and respond to technological advances is now essential for organizational resilience. However, most companies are not currently equipped to meet these demands.

Key Findings

The report outlines four central findings regarding talent strategy and business adaptability:

• Lack of proactive risk management: Most insurers are unprepared to manage rapidly changing global risks effectively.
• Need for systemic HR solutions: Fragmented talent strategies are proving inadequate; a more cohesive, enterprise-wide approach is needed.
• Prioritization of adaptable skills: Leading companies—referred to as “pacesetters”—are focusing on skill sets and roles that enhance organizational flexibility.
• Deeper talent intelligence: Sophisticated analytics tools are becoming essential to inform effective workforce planning and decision-making.

The Four R Framework and Strategic Response

To address these challenges, the report recommends implementing a systemic approach to workforce transformation, structured around the “Four R Framework”: recruiting, retention, reskilling, and redesigning. It suggests that sustainable growth will depend on operationalizing talent intelligence across these dimensions. The report concludes by presenting six actionable steps for leaders looking to develop a unified, AI-ready strategy for workforce adaptability. These steps are designed to help organizations keep pace with external disruptions and internal transformation requirements in an increasingly uncertain business environment. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.