New Zealand’s risk landscape is shifting, with IT, data and cyber risks coming to the fore, according to Marsh.

The global broker’s sixth biennial risk survey for the country rates major incidents including earthquakes, floods, fire and terrorism as the most feared risk for the third time in a row, but cyber is gaining fast.

A major IT disruption is the second most feared event, followed by loss of data and systems security failure.

Executive Director Steve Walsh told insuranceNEWS.com.au he is surprised to see major incidents clinging on to the top spot.

“People just have to take cyber more seriously. It can be hard to describe what cyber [risk] actually is, but absolutely nobody is immune from the impact when it goes wrong.

“We were recently told about an incident where a small law firm was infected by a virus and it took the office down for two-and-a-half days.”

Changes in demographics and customer trends is a new entrant to the top five risks, with an increase in online buying tying in with concerns about IT and loss of data.

Most respondents have plans in place to cope with major loss, but 61% do not have procedures to manage customer trends.

“Business planning plays a huge role in dealing with these particular types of risks,” the report says.

“Retailers, for example, are having to evolve their models from traditional bricks and mortar to a ‘bricks and clicks’ model, where they are integrating their online and offline presence.”

About 21% of survey respondents have suffered a high-impact loss in the past three years, compared with 25.5% in 2012.

Some 53% of those suffering a loss say their insurance policy did not provide cover, while 18% do not know.

“New Zealanders have a bit of a reputation for being underinsured,” the report says. “It is said that it is part of the ‘she’ll be right’ mentality.”

The survey sought the views of 111 senior executives from a range of organisations across New Zealand. Almost 60% of respondents were from SMEs.