Australian insurers’ preparedness to handle major risks has fallen to its lowest point in four years, according to new research. The data shows Australian firms are now 6.6% behind their global counterparts, with the gap the widest it has been in years. Insurers are contending with the accelerating impact of artificial intelligence (AI), cyber threats, and increased regulatory scrutiny.
Preparedness concerns
The study shows local insurers have lost ground on the Preparedness Index, a measure of confidence in managing risk. This comes as the sector navigates challenges from cybercrime, technology changes, AI disruption and climate events. The survey also reported a 6% drop in perception of risk, which analysts say may indicate adaptation or risk fatigue among Australian companies.
Cybercrime remains the top risk facing the industry. However, technology risk is now ranked second, while AI has vaulted from eleventh place to third among key concerns. This rapid rise puts emerging technologies at the centre of the sector’s risk management agenda.
Artificial intelligence impact
Insurers’ concerns about AI have jumped sharply since 2023. Two years ago, AI was not…
