More than two-thirds of insurance company CEOs see technology as an opportunity, but also as a threat.

Changing customer expectations means that data and analytics and relationship management systems are seen as ways to boost business.

But nearly 80 per cent of top executives in insurance said that cyberthreats are a barrier to growth, a higher percentage than in banking and capital markets.

The news came in the annual global survey report by professional services firm PwC looking at worldwide trends among CEOs, including more than 100 insurance chiefs in 43 countries.

Arthur Wightman, PwC Bermuda head and insurance leader, said: “Reinsurers and insurers are very much on the front line of a more unstable world.

“This uncertainty makes it more challenging to manage exposures but it also opens up opportunities as businesses look to the industry to provide the risk analysis, advice and protective coverage they need to navigate through this difficult landscape.

“To capitalise on these opportunities, reinsurers and insurers need to embrace new ways of working, novel ways of interacting with customers and alternatives to traditional products and services.”

He added: “Helping businesses to protect against cyber attacks offers huge potential growth for insurers — we estimate that annual premiums could reach $7.5 billion by the end of the decade.”

A PwC report entitled “Seizing the Future”, using information from the global survey, found that businesses were facing more complex problems that crossed the borders between geopolitics, regulation, cyber security, societal development, people and reputation.”

Stephen O’Hearn, PwC’s global insurance leader, said findings from the global survey of business leaders showed that insurers who were ahead of the game were more likely to view technology as an opportunity rather than a threat.

He added: “They are harnessing the creativity of their people to tap into new value chains and transform operational speed and cost.

“They are also seeking out new sources of data and making the most of client touch points to enhance customer experience, outcomes and whole new possibilities in what the business can deliver.”

And Mr Wightman said that helping companies protect against cyberattacks offers huge potential growth for insurers.

He added: “We estimate that annual premiums could reach $7.5 billion by the end of the decade.”

PwC warned, however, that cyber risk could also expose insurers to significant losses, both through claims on coverage and through technology errors and omissions and other existing business lines.

And insurance company CEOs are also worried about the speed of technological change, with 70 per cent registering concern, while 60 per cent are concerned about shifts in consumer spending and behaviour.

The report found that new competitive benchmarks are being set by new entrants with a good grasp of financial technology and which are looking for gaps and weak points in the market, using digital knowhow to improve customer understanding and undercutting established rivals with cost-efficient digital distribution.

PwC said that better use of technology could see income streams shifting from premiums to premiums plus subscriptions, while some insurers “may reinvent themselves altogether, from protecting against risks to managing and monetising information.”

The PwC survey showed that business leaders are less optimistic about the prospects for the global economy compared to last year.

Only 28 per cent of insurance CEOs believe they will see improvements this year, compared to 40 per cent in 2015.

And fewer CEOs are confident they will be able to increase revenues this year — 38 per cent compared to 44 per cent last year.

The report added that 70 per cent of insurers are planning to cut costs in the coming year, with technology said to be the trend most likely to change customer expectations over the next five years.