Technology-driven risks have reached historic highs in the global insurance industry, according to PwC’s Insurance Banana Skins 2025 survey, released yesterday at the Reinsurance Rendez-Vous de Septembre in Monte Carlo.

For the first time in the report’s 14-year history, the top three concerns for insurers worldwide are all technology related: cybercrime, artificial intelligence and keeping pace with rapid technological change.

Cybercrime retained its position as the No 1 threat for the third survey in a row, with its severity score at an all-time high.

The report cites the growing frequency and sophistication of cyberattacks, the rise of ransomware-as-a-service and fears over generative AI being misused as key drivers.

AI surged into second place, up from seventh in the previous edition, amid worries about AI-driven fraud, regulatory breaches and the danger of failing to capitalise on AI’s potential.

Falling behind in modernising legacy information technology systems ranked third.

Rounding out the top five global risks were macroeconomic pressures and climate change. But for reinsurers specifically, climate was ranked the No 1 concern “by a big distance”.

Matt Britten, partner at PwC Bermuda, said: “Technology-driven risks including cyberattacks and misuse of AI are at the top of global insurance concerns today.

“While these threats and risks have grown more sophisticated, the industry’s legacy of resilience … positions [insurers and reinsurers] not just to respond effectively, but to lead in shaping a more secure future.”

He added that economic pressures, geopolitical instability and regulatory challenges are compounding risks.

“The risks [insurers and reinsurers] face are not only interconnected but also rapidly evolving, highlighting the urgent need for adaptive strategies and proactive risk management.”

The biennial survey, conducted with the Centre for the Study of Financial Innovation and now in its tenth edition, gathered responses from hundreds of industry professionals worldwide, including in Bermuda.

Keyur Patel, author of the report, said insurers will need to confront fundamental questions: “How do insurers stay relevant to customers? Are existing business models fit for purpose?

“The tone of the responses we received suggest that when risks are known, the industry is often well prepared — but the looming unknowns could ultimately define its future.”