DAC Beachcroft LLP has released predictions for Singapore and Southeast Asia in 2026, highlighting rising risks from insolvencies, cyberattacks, and climate-related damage.
According to the report, business insolvencies are expected to rise across the region, leading to more claims challenging management accountability and fiduciary duties. Research indicates an average 6% increase in insolvencies in 2026, with construction, real estate, and retail sectors most vulnerable.
Directors face pressure from inflation, interest rate increases, geopolitical uncertainty, and supply chain disruptions. Cyberattacks are also expected to grow, affecting acquiring companies.
The report also highlighted that interest in trade credit insurance is likely to rise as a key risk management solution.
Rising demand for electric vehicles in the US and Europe, driven by government incentives and decarbonization efforts, is expected to boost product recalls and liability claims. New manufacturers using developing technologies to produce EVs quickly at lower prices may face quality control challenges.
Production remains concentrated in China, Taiwan, and South Korea, which must balance demand against Western safety standards. Since many EV manufacturers supply parts to multiple automakers, defects could trigger widespread claims. Insurers are responding with higher premiums or stricter terms for products sold in the US and Europe.
Advancements in artificial intelligence are expected to enable more sophisticated cyberattacks. Threat actors are using AI to create deepfakes and other deceptive tactics to steal credentials. One recent example involved an employee transferring large sums after receiving a deepfake video of a senior executive.
AI may also aid password cracking and large-scale data mining. Improved translation tools now make Asian language datasets more accessible to cybercriminals. The report predicts a rise in cyber claims from deception-based attacks.
Climate change threatens renewable energy development in Asia despite the region’s potential for solar and wind projects. Extreme weather events - including heavy rainfall, heatwaves, typhoons, and earthquakes - pose increasing risks.
In March 2025, a 7.7-magnitude earthquake struck Myanmar, Thailand, and western China, disrupting solar energy production in key areas including Yunnan and Inner Mongolia. Nearly 50% of installed solar and hydropower projects, over 40% of wind turbines, and more than 20% of grid infrastructure in Southeast Asia are located in regions prone to cyclones, typhoons, and earthquakes.
The report anticipates rising claims for property damage, construction delays, and financial losses from system failures and power outages as extreme weather increasingly strains renewable electricity production capacity.
