4 Key Threats to Critical Infrastructure

Globally, critical infrastructure is under greater pressure than at any point in recent history. The failure of these fundamental physical and digital systems has the potential to threaten public safety, economic stability and national security.

These essential systems range from energy grids and water networks that sustain daily life to transportation corridors and communication systems that connect economies. Today, they're facing a convergence of threats that no single organization or government can address alone.

In its Global Risks Report 2026, the World Economic Forum ranks disruptions to critical infrastructure among the top risks in its two-year outlook — rising four positions from #26 to #22 in a single year.¹ This shift reflects a threat landscape that has evolved from isolated incidents to coordinated, multi-vector campaigns capable of flowing across borders and sectors simultaneously.

Building on this global perspective, Gallagher's analysis identifies four key threats to critical infrastructure that organizations should be prioritizing in their resilience and risk management strategies.

Examining the four major threats to critical infrastructure

Geopolitical risk: State-sponsored actors and hybrid warfare tactics are increasingly targeting physical infrastructure and essential systems across borders.

Natural catastrophes and extreme climate: From geomagnetic storms and super typhoons to wildfires, the exposure gap between infrastructure built for yesterday's climate and today's realities is accelerating.

Cyber threats: Ransomware, AI-powered attacks and persistent state-sponsored intrusions can pre-position adversaries inside critical networks.

Aging assets: Decades of deferred maintenance are compounding into systemic risk, particularly across Organization for Economic Co-operation and Development (OECD) nations where fiscal constraints have left physical infrastructure chronically underfunded.

Critical infrastructure protection is no longer about compliance; it's fundamental to economic and business resilience. This report is for risk and insurance professionals, corporate risk managers, infrastructure operators and policymakers seeking to understand today's threat landscape and strategies to build resilience.

Key findings in our report

The growing disruption to critical infrastructure now threatens not just modern economies but also public safety, social stability and geopolitics — making proactive risk management vital.
Cyber risk and acts of political aggression are now at the forefront of the threat landscape. State-affiliated actors can infiltrate utility networks, pre-positioning crises that risk widespread outages.
AI-powered hacking tools amplify attacks on telecom infrastructure — including deep-sea cables and data centers — endangering emergency response, finance and healthcare systems.
Wildfires, windstorms and droughts increasingly damage physical infrastructure, such as power, transportation and supply chains, with recovery stretching months and costs in billions.
Aging and underfunded physical infrastructure magnify risks, as seen in Calgary's 2025 water crisis. Even as massive new investments in data centers loom, aging transport networks, water systems and power grids approaching the end of their lifespans raise concerns.
Organizations can strengthen infrastructure resilience by stress-testing business continuity plans, setting emergency protocols and structuring insurance coverage for systemic failures.

Key questions about critical infrastructure

What's meant by critical infrastructure?

Critical infrastructure refers to the physical systems, networks, facilities and assets that are so essential to the functioning of a nation that their disruption, damage or destruction would have a severe impact on national security, public health, economic activity or daily life.

Critical infrastructure includes essential systems such as energy grids, water supply networks, transportation corridors, communication systems and financial services. In an interconnected world where these systems are deeply interdependent, failure in one sector can trigger cascading consequences across many others.

What are the 16 critical infrastructure sectors?

The US Cybersecurity and Infrastructure Security Agency (CISA) identifies 16 critical infrastructure sectors:²

Chemical
Commercial facilities
Communications
Critical manufacturing
Dams
Defense industrial base
Emergency services
Energy

Financial services
Food and agriculture
Government services and facilities
Healthcare and public health
Information technology
Nuclear reactors, materials and waste
Transportation systems
Water and wastewater systems

Each sector houses the physical infrastructure and essential systems that support a specific dimension of national life and economic activity.

What is critical infrastructure protection?

Critical infrastructure protection (CIP) refers to the policies, programs, technologies and collaborative frameworks designed to safeguard the essential systems that reinforce national security and public life. It encompasses both physical security measures and cybersecurity controls, alongside risk management strategies, business continuity planning and information-sharing arrangements between public and private sector operators.

As the definition of critical infrastructure expands to include AI systems, satellite infrastructure and semiconductor manufacturing, the scope of critical infrastructure protection is broadening, with regulatory frameworks evolving to keep pace.

How can organizations improve infrastructure resilience?

Building infrastructure resilience requires a multi-layered approach that goes beyond reactive crisis management. Organizations should conduct rigorous scenario planning to identify vulnerabilities before they're exploited and maintain up-to-date business continuity plans. This approach can help in early identification of failures in essential systems and establish clear emergency communication channels between IT, operations and senior leadership.

From an insurance perspective, corporate risk managers should work with brokers to stress-test how coverage will respond in the event of a major infrastructure disruption — including cyberattacks, physical damage and supply chain failures.

Published September 2023
Updated April 2026

Sources

¹"The Global Risks Report 2026," World Economic Forum, accessed 8 Jan 2026. PDF file.

²"Critical Infrastructure Sectors," CISA, accessed 8 Jan 2026.

Disclaimer

CONDITIONS AND LIMITATIONS Gallagher's global operations, including a network of correspondent brokers and consultants, offers client-service capabilities in more than 130 countries around the world. This report and supporting information is not intended to provide legal or financial advice and reflects our understanding as of September 2023. It should not be regarded as a comprehensive statement of the law and/or market practice in the regions covered. You should not act upon information in this publication nor determine not to act, without first seeking specific legal and/or specialist insurance and risk management expertise. Should you require advice about your specific insurance arrangements or claim circumstances, please contact your Gallagher account representative.