‘The complex and demanding intervention that AI is creating across the sector clearly presents both opportunity and risk,’ says chair
AI, regulatory pressure and climate-related losses are among the biggest issues shaping the global insurance market in 2026, according to a new report from Global Insurance Law Connect (GILC).
The legal network’s annual Risk Radar report, now in its eighth edition and published today (18 June), draws on insights from member firms across 28 jurisdictions and five continents to identify the trends influencing insurers, brokers and their advisers.
AI emerged as a major theme, with insurers increasingly assessing both the opportunities and risks associated with the technology.
The report notes that AI, automation and cyber risk are reshaping underwriting, claims handling, governance and customer engagement, creating new operational and regulatory challenges.
Gillian Davidson, chair of Global Insurance Law Connect (GILC), commented: “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.”
Alongside technological change, the report highlighted growing regulatory scrutiny across many markets.
Insurers are facing increased expectations around operational resilience, governance, conduct standards and customer protection, while adapting to evolving compliance requirements.
Global pressures
Climate-related losses also remain a significant concern, with the report warning that continued catastrophe activity is placing pressure on pricing, reinsurance arrangements and product design.
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The issue is also prompting wider questions about long-term insurability and affordability in some markets.
Beyond these themes, the report examines local developments ranging from tax reforms and legislative changes to foreign investment policies, infrastructure projects and geopolitical tensions.
Davidson said the findings showed insurers around the world were increasingly dealing with a common set of challenges.
“These issues increasingly require informed, cross-border thinking, which the GILC network is well placed to support,” she added.
With a background in local journalism, she has previously worked as a freelance reporter covering community stories and gaining valuable on the ground experience.View full Profile
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