Artificial intelligence, regulatory pressure and climate-related losses are emerging as the defining challenges for insurers in 2026, according to the latest Risk Radar report from Global Insurance Law Connect.

Drawing on insights from member firms across 28 jurisdictions, the report identifies AI, automation, cyber risk and changing distribution models as key forces reshaping underwriting, claims, governance and customer engagement. It notes that insurers, brokers and advisers are increasingly focused on the legal, operational and regulatory implications of rapid technological change.

The report also highlights intensifying regulatory scrutiny, particularly around operational resilience, governance, conduct and customer protection, as supervisors take a more interventionist approach across multiple markets.

Meanwhile, ongoing climate-related losses continue to influence pricing, reinsurance strategies and product development, while raising broader concerns around long-term insurability and affordability.

Gillian Davidson (pictured), chair of GILC, said: “This year’s Risk Radar shows how quickly the key pressure points for insurers are converging across different markets. 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.

“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.”


Read GILC's latest opinion piece in the current issue of CIR Magazine.

---