Executives may be entering 2026 with renewed confidence in their companies’ prospects, but the optimism masks mounting day-to-day pressure. A new survey from Sentry shows how economic uncertainty, tariff exposure, shifting workforce dynamics, and an expanding risk landscape are reshaping how leaders think about resilience, cost, and operational readiness.
Business Confidence Holds but Pressure Intensifies
Sentry’s 2026 C-Suite Stress Index, conducted with Wakefield Research, finds that 54% of U.S. executives expect their organizations to perform strongly this year. Yet 60% say they are more stressed than they were 12 months ago, reflecting a widening gap between long-term confidence and near-term strain. Company representatives note that hesitation is increasingly visible in operating decisions. Jeff Cole, AVP of national accounts at Sentry, points to slowing payroll expansion as one early indicator that businesses are bracing for more volatility.
Tariff uncertainty is one of the factors heightening caution. Brett Hoopingarner, Sentry’s national sales director for direct writer and life and annuities, says customers who previously selected inflation-guard coverage of 2–4% are now requesting protection in the 8–10% range. Recent trade reports show similar behavior across several manufacturing sectors, where companies facing higher import duties on components or equipment have begun reexamining cost buffers and insurance structures to maintain continuity.
Risks Are Rising, but Awareness Is Uneven
The survey highlights a familiar list of operational threats for 2026, led by supply chain and logistics disruption (45%) and broader economic pressure (44%). Executives remain focused on tariff and trade exposure (39%), labor shortages (38%), healthcare costs (38%), and cyberattacks (37%). But the data shows a notable mismatch between experience and prioritization. Although 93% of organizations have faced lawsuits in the past five years, and 69% believe a single multimillion-dollar verdict could force closure, only 17% view litigation as a top risk this year.
A similar disconnect appears in climate-related disruptions. Despite 92% of businesses encountering severe weather or natural catastrophe impacts recently, just 32% rank these events among the biggest threats for 2026, even as half of surveyed executives worry the next major incident could shutter operations entirely. Public-domain reports from insurers reinforce the trend: weather-related losses have climbed steadily over the past decade, with infrastructure-dependent sectors facing compounding cost exposure.
Workforce strain is another source of pressure. Eighty-four percent of executives say employees are being asked to take on tasks outside their standard roles, and 51% report longer hours or fewer breaks. While leaders plan to increase investment in worker safety (83%), more than three-quarters hope those efforts also bolster retention in a tight labor market.
Aging Labor Pools Add Operational Complexity
Nearly all executives (97%) say demographic shifts are reshaping workforce dynamics. Two-thirds either already see, or expect to see, a rise in claims tied to unskilled or under-skilled labor, a concern that mirrors trends documented in manufacturing and logistics sectors where training pipelines have struggled to keep pace with turnover. As retirement ages climb, 46% of respondents say aging workforces are already contributing to higher healthcare costs.
Insurance reevaluation is near universal. Ninety-eight percent of executives plan to review their company’s policies this year, though 83% admit they are not fully confident current coverage is adequate. Even so, more than half intend to maintain existing plans, an indication of the tension between cost control and risk preparedness.
How External Data Streams Are Quietly Redrawing Risk Timelines
One development gaining traction across insurers and industry regulators is the use of high-frequency event data, covering weather claims, workforce injury patterns, and equipment-related losses, to shorten detection windows for operational strain. These public datasets are progressing faster than many internal reporting cycles, giving executives an earlier view of stress points that traditionally surfaced only after disruptions became costly. As more of this information becomes available in 2026, organizations that align their planning cadence with these external signals can adjust with fewer delays and greater precision, especially in environments where conditions shift faster than corporate reporting rhythms.
