Political risk impacting profitability for 85% of UK businesses – Beazley

Findings from specialist insurer Beazley’s latest Geopolitical and economic risk and resilience survey have demonstrated the rising impact of political risks for UK business profitability. 

The August 2025 survey of 3,500 business leaders found that 85% of survey respondents in the UK said political risks were direct affecting profitability.

This represented a rise of 15 percentage points from Beazley’s previous survey, which was carried out in January. 

There was also a growth in the amount of UK business leaders who believed that today’s geopolitical and economic climate was curbing growth, with 86% reporting this view in August compared to 69% in January. 

As a result of these beliefs, 89% of UK respondents said they were making changes to adjust suppliers or their supply chains – up from 72% in January. 

Navigating unpredictability 

Commenting on the results of the survey, Beazley’s group head of specialty risks Bethany Greenwood said: “Businesses are navigating a risk environment that’s more layered, complex and unpredictable than ever. Political shifts, economic uncertainty and global tensions are converging at an unprecedented scale – and the ripple effect is shaking business confidence across sectors and geographies.

“But, while it is easy to get caught up in short term disruptions, the real opportunity lies in looking ahead. Growth is still possible, but is demands sharper foresight, faster adaptation and a clear view of where risk meets opportunity. 

“Firms that proactively reassess risks, embed resilience and work with insurance partners can protect against shocks, move confidently and capture growth in emerging tech, energy and global markets.”