In this edition of Insurance Business’ Big Questions, insurance executives were asked about their biggest fears regarding the current geopolitical climate. The concerns they raised include the rapidly evolving landscape of AI-driven cyber threats and how these are impacting the insurance industry. Insurers are struggling to keep up with the sophisticated nature of these threats, which are becoming increasingly difficult to mitigate.
The executives also discussed how client expectations are evolving in response to these new risks. As the global geopolitical situation continues to shift, clients are becoming more aware of potential risks and are demanding more comprehensive coverage from their insurers.
The impact of AI on professional risks coverage was another significant concern. As AI becomes more prevalent in various industries, insurers are having to adapt their coverage to address new types of risks that arise from the use of this technology.
Looking ahead to 2025, insurance leaders are also worried about what their clients will be most concerned about in the coming year. Top tips for cyber risk prevention were shared, emphasizing the need for robust cybersecurity measures to protect against increasingly sophisticated threats.
The challenges facing private equity firms in dealing with cyber risks were also examined. Insurers are working to provide coverage that addresses these challenges, but the rapidly evolving nature of cyber threats makes this a complex task.
Other topics discussed included the challenges in environmental insurance, the growth of certain insurance lines, and the impact of storms on property insurance. The role of AI in cyber insurance is being closely examined, as is the state of Errors & Omissions (E&O) and Media Professional Liability (MPL) coverage.
The wholesale broking space is facing its own set of challenges, and insurance leaders are looking for ways to overcome these. Workers’ compensation conditions and capacity in construction insurance were also on the agenda, with discussions around what needs to change in the insurance sector to better address current and future risks.
The stability of the property insurance market and the anticipated changes in the reinsurance market were also topics of discussion. As the insurance industry navigates these complex issues, professionals are looking for insights into professional risks in 2025 and beyond.
