Australian Insurers Falling Behind in Risk Preparedness
Emerging Technologies Pose Significant Challenges
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Recent findings from PwC's Insurance Banana Skins Survey highlight a concerning trend: Australian insurers are trailing their global counterparts in risk preparedness.
The survey, which gathered insights from 698 insurance executives across 42 territories, indicates that Australian insurers scored 6.6% lower on the Preparedness Index compared to the global average.
One of the most pressing issues identified is the rapid acceleration of risks associated with cyber threats and artificial intelligence (AI). Digital security threats have consistently topped the list of concerns, but the prominence of AI-related risks has surged dramatically. In just two years, AI has climbed from the 11th to the third position among identified risks.
Antonie Jagga, leader of PwC's insurance operations in Australia, emphasized the unprecedented speed at which these risks are evolving. He noted that the insurance sector is experiencing a preparedness gap that wasn't evident two years ago, with Australian insurers feeling less equipped to manage these challenges compared to their global peers.
For tradespeople and small business owners in Australia, this lag in risk preparedness among insurers could have direct implications. As the insurance industry grapples with emerging technologies and associated risks, policyholders may face uncertainties regarding coverage adequacy and premium stability. It's crucial for trades professionals to stay informed about these developments and engage proactively with their insurers to ensure their policies remain comprehensive and responsive to evolving risks.
In conclusion, the Australian insurance sector's current position underscores the need for a concerted effort to enhance risk preparedness. By addressing these gaps, insurers can better serve their clients, including those in the trades sector, ensuring robust protection against the rapidly changing risk landscape.
Published:Tuesday, 10th Feb 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
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