AI, digital transformation, regulatory change and climate risk have become the top concerns for insurance managers across 28 jurisdictions and five continents, according to the eighth edition of Global Insurance Law Connect's 2026 Risk Radar Report, published on 18 June 2026. The 62-page survey maps a sector where rapid technological change is creating new legal and operational questions alongside immediate regulatory pressures and mounting climate-related losses.
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."
Regulatory pressure and operational resilience
Regulatory demands are becoming more immediate and practical across many jurisdictions. Supervisors are increasing scrutiny of operational resilience, governance, conduct and customer protection. Insurers face a tightening set of expectations that require more than box-ticking compliance.
These demands intersect with the AI challenge. As insurers deploy automated systems for underwriting and claims, regulators are asking harder questions about transparency, bias and accountability. The report frames this as a cross-border problem that requires coordinated thinking.
Climate risk and the affordability question
Continuing climate-related losses are placing pressure on pricing, reinsurance and product design. The report raises longer-term questions around insurability and affordability - whether some risks become too expensive to cover, or too unpredictable to model.
This is not a future concern. The report signals that climate-related claims are already reshaping market dynamics in multiple jurisdictions, forcing insurers to rethink product structures and capital allocation.
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."
Davidson added, "Regulatory demands are also becoming more immediate and more practical, while continuing climate-related losses are challenging long-term insurability and affordability."
She said the common challenges across jurisdictions increasingly require informed, cross-border thinking - a role the GILC network is built to support.
Why this matters for insurance professionals
For underwriters, claims handlers and risk managers, the report confirms that AI is no longer a side project. It is embedded in distribution, underwriting and customer interaction, which means every operational decision now carries a regulatory dimension. AI for Insurance training and adoption strategies are moving from optional to essential as firms navigate these overlapping pressures. The report does not offer a roadmap, but it makes clear that waiting for clarity is not a strategy - the risks are already in motion.
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