AI, digital transformation, regulatory change and climate risk have emerged as the top risks for insurance managers across five continents and 28 jurisdictions according to a new survey.
The 62-page eighth edition of Global Insurance Law Connect’s 2026 Risk Radar Report published on 18 June 2026 revealed the growing impact of AI across the insurance sector, as insurers, brokers and their advisers consider both the opportunities and risks created by rapid technological change.”
The report said, “AI, automation, cyber risk and evolving distribution models are reshaping underwriting, claims handling, governance and customer interaction, creating new legal, operational and regulatory considerations for insurers worldwide.”
The 2026 Risk Radar sets out the issues shaping the insurance sector in 2026, with AI, digital transformation, regulatory change and climate risk emerging as defining themes across markets.
The report highlights include the following:
- Regulatory demands are becoming more immediate and practical across many jurisdictions, with closer scrutiny of operational resilience, governance, conduct and customer protection.
- Continuing climate-related losses are also placing pressure on pricing, reinsurance and product design, while raising longer-term questions around insurability and affordability.
Global Insurance Law Connect Chair Gillian Davidson said, “The complex and demanding intervention that AI is creating across the sector clearly presents both opportunity and risk, and it is now one of the central issues being discussed by insurers, regulators and advisers globally.
“Regulatory demands are also becoming more immediate and more practical, while continuing climate-related losses are challenging long-term insurability and affordability.”
Mr Davidson said, “Not surprisingly, it remains clear that insurers across the jurisdictions we represent are all grappling with a common set of challenges. These issues increasingly require informed, cross-border thinking, which the GILC network is well placed to support.”