Tech Risks Dominate Insurance Concerns: A New PwC Report
For the first time, technology-related risks top the list of concerns for insurance companies in the coming year. Cybercrime, AI, and rapid technological advancements are at the forefront, according to PwC’s latest Insurance Banana Skins report. The report surveyed nearly 700 individuals within the insurance industry about their perspectives on the risks facing the sector.
“Cybercrime continues to be the primary concern for insurance companies, with attacks becoming increasingly sophisticated and frequent,” says Morgan Sandström, Head of Insurance at PwC Sweden. “The results reflect a widespread feeling that the industry is constantly a target for attacks that can have devastating consequences, both materially and for companies’ brands.”
In the previous edition of the report, regulations and climate change ranked second and third, respectively. However, they have now been pushed down in favor of two additional technology-related risks. Artificial intelligence is now the second-highest concern, with its significant opportunities overshadowed by substantial risks, such as AI-driven fraud, new forms of cyberattacks, and the risk of non-compliance with new regulations. The third-highest ranked risk involves concerns about keeping pace with technological developments, including risks associated with outdated IT systems and the high costs of modernization.
Top 10 Risks for Insurance Companies in 2025 (2023 Ranking in Parentheses)
- Cybercrime (1)
- AI (7)
- Technology (4)
- Macroeconomy (6)
- Climate Change (3)
- Regulatory Changes (-)
- Skills (5)
- Transformation (10)
- Political Risks (11)
- Fit-for-purpose regulation (2)
While transformation is ranked eighth on the list of concerns, it is also key to overcoming many of the challenges the industry faces. In a world where change is constant and planning ahead becomes increasingly difficult, insurance companies that build teams with the right skills, leverage technological advancements, and act decisively will be the most competitive.
Interestingly, the risk of increased competition is ranked only seventeenth in this year’s report. This may indicate that tech-driven players have not made as significant an impact as feared a few years ago. This suggests that established insurance companies have successfully modernized and are now using their data more effectively.
About the Insurance Banana Skins Report
Insurance Banana Skins is a recurring global survey produced jointly by PwC and the Centre for the Study of Financial Innovation (CSFI). The survey maps the insurance industry’s view of potential risks and the perceived preparedness of the industry for these risks. This year’s survey is the tenth since its inception in 2007, with responses from 698 respondents in 42 countries, including Sweden.
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