Cyber threats, economic strain, and AI top insurance industry concerns in 2026
Cyber incidents, economic pressures, and artificial intelligence have emerged as the primary risks facing the insurance industry, according to RiskScan 2026, a cross-market research study by the Insurance Information Institute and Munich Re US.
The study surveyed more than 1,700 respondents across the U.S. and U.K. insurance markets to assess shifting risk perceptions. Researchers found that cyber, economic, technological, and catastrophe risks are increasingly interconnected rather than isolated.
Cyber losses accelerating
Cyber threats are growing in frequency and complexity. Companies face exposure to customer data breaches, while smart homes and interconnected devices present new attack surfaces.
The research noted that cyber losses are rising and becoming more costly for insurers. Businesses and individuals struggle to predict cyber threats, making coverage valuable across all market segments.
Secondary catastrophes now primary concern
Natural catastrophes ranked among the top three risks. In 2025, non-peak perils-wildfires, flooding, and severe thunderstorms-generated the costliest claims year to date, despite the absence of major hurricane landfalls.
Secondary perils are now widely viewed as frequent, high-impact risks. This challenges traditional assumptions about catastrophe exposure and diversification strategies.
Business interruption cuts across sectors
Business interruption emerged as a universal concern for insurance professionals. Cyberattacks, natural disasters, labor strikes, and geopolitical conflicts all pose operational disruption risks.
Consumers rated this concern lower than businesses, reflecting different exposure profiles.
AI tops emerging technology risks
Artificial intelligence ranked as the most impactful emerging technology. Insurers cite operational, regulatory, liability, and systemic risks as primary concerns despite rapid AI adoption.
Insurers are developing new products and models to help businesses navigate AI-related exposures.
Protection gaps persist
Significant coverage gaps remain for flood and cyber insurance among businesses and professionals. The research did not specify the scope of these gaps.
Rising legal system abuse is driving up property and casualty insurance costs, signaling broader affordability pressures affecting market stability.
Integration over isolation
The interconnected nature of modern risks is pushing organizations toward more proactive approaches. Supply chain diversification, geopolitical intelligence, and frequent continuity planning updates are becoming standard practice.
Industry leaders emphasized the need for collaboration among insurers, reinsurers, policymakers, and risk management professionals to address emerging exposures and close protection gaps.
For insurance professionals seeking to deepen expertise in these areas, resources on AI for Insurance and AI for Finance offer focused guidance on managing technological and financial dimensions of evolving risk.
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