AI, cyber, and climate risks to dominate insurance agenda in 2026, says GlobalData

Artificial intelligence (AI), cyber insurance, and climate change / natural catastrophes will be the three most influential themes shaping the insurance industry in 2026, according to GlobalData’s latest annual predictions.

Ben Carey-Evans, Senior Insurance Analyst at GlobalData, said insurers that move early to establish leadership in these areas stand to gain a significant competitive advantage. “Insurers that establish themselves as leaders in these themes will see improved performance, better products, and enhanced customer service. AI is undoubtedly the leading technology trend in the insurance industry at present… Its impact can be felt throughout the value chain, and agentic AI’s ability to react to live information and make human-like decisions will accelerate the impact AI has on insurance in 2026 and beyond.”

GlobalData highlights a sharp rise in AI-driven dealmaking across the sector. The total value of merger and acquisition (M&A) deals involving AI in insurance surged by 328% in 2025, while deal volumes increased by 125%. This growth has been fuelled by the rapid emergence of generative and agentic AI, a trend also reflected across GlobalData’s Jobs and Company Filings databases.

Recent activity includes Munich Re’s acquisition of Next Insurance in July 2025, a technology-first commercial property and casualty (P&C) insurer with a strong focus on AI and digitalisation, underlining insurers’ growing appetite for advanced capabilities.

Cyber insurance and climate-related risks are also expected to remain high on boardroom agendas. The cyber insurance market continues to expand rapidly, with GlobalData forecasting global premiums of US$22.2bn in 2025, rising to $35.4bn by 2030.

At the same time, climate change and the increasing frequency of severe weather events are intensifying pressure on insurers worldwide. Carey-Evans warned: “Natural fire and hazard insurance is a major insurance product globally, with premiums and claims seeing sharp annual increases… The frequency of severe weather events is a huge threat to the industry and large areas of the world are becoming uninsurable, which is a major problem for consumers.”

GlobalData concluded that insurers’ responses to these three themes will be critical to their resilience and relevance in the years ahead.

The ITIJ team recently explored the issues caused by poor cybersecurity and what healthcare providers can do to address them.