Australian Insurers Face Challenges in Emerging Risk Preparedness

The survey, which gathered insights from 698 insurance executives across 42 territories, revealed that Australian insurers scored 6.6% lower on the Preparedness Index compared to the global average. Notably, AI has emerged as a major concern, advancing from 11th place to third position in just two years.

Antonie Jagga, who leads PwC’s insurance operations in Australia, highlighted the rapid acceleration of these risks, stating that the speed of change is creating a preparedness gap that didn't exist two years ago.

For small to medium business owners, self-employed professionals, and high-income freelancers, this lag in preparedness among insurers could have significant implications. As cyber threats and AI-related risks become more prevalent, it's crucial for businesses to ensure their insurance providers are equipped to offer adequate protection against these evolving challenges.

Staying informed about your insurer's capabilities and approach to emerging risks can help in making informed decisions about coverage, ensuring that your business remains resilient in the face of new and evolving threats.