Commercial property insurer FM has published its 2026 FM Resilience Index, an annual ranking of 130 countries and territories by the resilience of their business environments. Denmark held the top position for a third consecutive year.
European economies dominated the top of the table, taking nine of the top 10 places. Luxembourg ranked second, while Singapore was the only non-European economy in the leading group, at number three.
The rest of the top 10 comprised Norway, Switzerland, Germany, Sweden, Ireland, Finland and Belgium. Overall, the results indicate higher scores in Europe and parts of Asia, mixed outcomes across parts of the Americas, and improvements in several African countries.
FM attributed Denmark’s continued lead to improved scores across several measures, including cybersecurity, climate risk exposure, climate risk quality, fire risk quality and greenhouse gas emissions.
US shifts
The United States appeared in the index across three zones and finished outside the top 10 in each. Zone 3, covering the Midwest and Southwestern United States, ranked 11th. Zone 1, the Eastern United States, placed 12th, and Zone 2, the Western United States, placed 16th.
Elsewhere in the Americas, Mexico slipped four places to 80 and Brazil fell 14 places to 71, underscoring a more uneven regional picture compared with Europe’s concentration at the top.
India rises
India gained across all three of its index zones. Zone 1, Eastern India, rose three places to 94. Zone 2, Northern India, climbed four places to 100. Zone 3, covering the Central and Western region, rose four places to 76.
FM said the index is grounded in analysis of property losses, adding that locations in the top 50 tend to recover, on average, more than 30% faster from property losses than those further down the table.
“What businesses don’t see can hurt them, especially as climate and operational risks shift faster than expected,” said Leo Kushner, Business Intelligence Director at FM. “The 2026 FM Resilience Index delivers the objective insight leaders need to navigate volatility, understand evolving risk and make more resilient strategic decisions.”
FM framed India’s movement as a sign of changing approaches to assessing operational risk, alongside physical hazards linked to climate and fire. It comes as many companies re-examine supply chain exposure and the stability of key markets.
“India’s continued rise across all three regions in the 2026 FM Resilience Index reflects the country’s growing focus on strengthening infrastructure, enhancing digital adoption and improving risk awareness. As global supply chains evolve and climate and cyber risks intensify, India is positioning itself as an increasingly resilient destination for investment and long-term growth. Businesses that proactively address physical and operational risks will be better placed to capitalize on this momentum,” said Srini Krishnamurthy, Senior Vice President at FM India.
Big movers
Over the past five years, the index shows notable gains for several African countries. Ghana climbed 18 places to 70, Rwanda rose 14 places to 67, and Nigeria gained 12 positions to 102.
The steepest declines over the same period included Croatia, down 22 places to 44, and Cameroon, down 18 to 113. Mongolia fell 17 spots to 108, while Iran slipped 16 spots to 125.
Geopolitics
FM pointed to geopolitics as a factor influencing resilience outcomes. Iran continued a multi-year decline, dropping eight places to 125 in the 2026 ranking. It fell five places to 127 in the inflation category and dropped 14 places to 87 for internet usage.
Ukraine dropped five places to 84, while Russia rose one to 59. Over the past five years, Russia and Ukraine have fallen by seven and 12 ranks respectively, according to the index.
Venezuela ranked last, at 130, after falling five places. FM linked the result to declines in factors including health expenditure, education, inflation and GDP per capita.
Data centres
FM positioned the index as a reference point for sectors with large-scale infrastructure needs, including data centres and power generation. It cited the United States, China and major European hubs as established data centre markets, while also pointing to other countries that score strongly on factors such as cybersecurity, governance and engineering standards.
Denmark was highlighted for energy efficiency and a 20-place rise in cybersecurity. Singapore was cited for its established data centre ecosystem and what FM described as stable governance, strong digital infrastructure and advanced engineering standards.
Several European economies in the top 10 were also presented as favourable for grid resilience, regulation and physical-risk profiles, including Switzerland, Germany, Sweden and Finland. In Asia, Japan ranked 32 and South Korea ranked 34.
The index ranks countries across 18 drivers, combining country-level comparisons of macro and physical risks-such as water stress, fire risk, energy intensity and climate risk-with third-party data from sources including the International Monetary Fund and World Bank, alongside FM measures.