Insurance Banana Skins 2025: Top risks for insurers revealed

The 2025 edition of Insurance Banana Skins, produced by the Centre for the Study of Financial Innovation (CSFI) in partnership with PwC and the London Foundation for Banking & Finance, provides a comprehensive snapshot of the most urgent risks facing the global insurance sector. Drawing on insights from 698 practitioners across 42 territories, the report highlights a sector under intense pressure from both external shocks and internal challenges.

Cybercrime remains the industry’s leading risk for the third consecutive survey, reflecting the relentless evolution and increasing sophistication of cyber threats. The rise of generative artificial intelligence (GenAI) has propelled AI to the second spot, with respondents citing both the risk of misuse and the challenge of keeping pace with rapid technological change. Technology risk, particularly the struggle to modernise legacy IT systems, continues to hamper innovation and efficiency.

Macroeconomic uncertainty has climbed to its highest ranking in a decade, driven by inflation, volatile interest rates and geopolitical instability. Climate change, while slightly lower in the overall ranking, is the top concern for the property and casualty and reinsurance sectors, as extreme weather events and uninsurable risks become more frequent.

Other significant risks include regulatory change, talent shortages, and the ability to manage organisational change. The report underscores the interconnectedness of these risks and the need for insurers to adapt quickly. While the industry is seen as reasonably well-prepared for traditional risks, there are concerns about its agility in responding to fast-moving challenges such as AI, climate change and cyber resilience.