By Shannon Williams
Publication Date: 2025-11-27 23:19:00
Australian insurers’ willingness to deal with major risks has fallen to its lowest level in four years, according to a new study. The data shows Australian companies are now 6.6% behind their global peers, with the gap the widest in years. Insurers are grappling with the increasing impact of artificial intelligence (AI), cyber threats and increasing regulatory scrutiny.
Readiness concerns
The study shows that local insurers have lost ground on the Preparedness Index, a measure of confidence in risk management. This comes as the sector navigates the challenges posed by cybercrime, technological changes, AI disruptions and climate events. The survey also found a 6% decline in risk perception, which analysts said could indicate adaptation or risk fatigue among Australian businesses.
Cybercrime remains the biggest risk to the industry. However, technology risk now ranks second, while AI has moved from eleventh to third place among top concerns. This rapid increase brings…
