Insurance is often thought of as something people only engage with at key moments: when a policy starts, when something changes, or when a claim is needed. But the insurance sector itself is evolving, influenced by a mix of emerging risks, technology change, and shifting customer expectations.
Two recent industry reports highlight how insurers are thinking about the year ahead. Deloitte’s 2026 Global Insurance Outlook provides a global perspective, while PwC’s New Zealand Insurance Banana Skins 2025 offers insight into the risks New Zealand insurers are most focused on.
A changing risk landscape is shaping priorities
PwC’s report suggests local insurers are navigating a rapidly evolving risk environment, particularly around artificial intelligence, cybercrime, and climate change. These themes largely mirror global concerns, but the local findings highlight how prominent they have become for New Zealand insurers.
Deloitte’s global outlook reinforces this perspective, noting that insurers are operating in an environment where uncertainty and complexity are not a short-term phase. Economic volatility, catastrophic events, distribution changes, and rising expectations around convenience and trust are all influencing how insurers operate.
Artificial intelligence is becoming central
Both reports emphasise the growing role of artificial intelligence, though the focus is less on experimentation and more on readiness.
PwC highlights AI as a key risk area when governance is weak, including the potential for AI-enabled fraud, privacy issues, and the use of unapproved tools by staff. Deloitte similarly notes that insurers are moving from technology modernisation plans towards practical AI use cases, but success depends on strong data foundations, modern systems, and robust security.
For customers, these changes may influence how efficiently information is processed, how claims are managed, and how insurers communicate across digital and human channels.
Cyber risk and resilience are now core considerations
Cybercrime continues to feature prominently in PwC’s local risk rankings, reflecting the volume and sensitivity of data insurers manage and the sophistication of modern cyber threats.
Deloitte also highlights that increased use of cloud platforms, connected systems, and digital integrations can improve capability but also increase exposure to cyber risk. As a result, insurers are placing greater emphasis on resilience, third-party oversight, and data protection.
For customers, this often shows up through stronger identity checks, more secure communication channels, and increased focus on fraud prevention.
Climate risk is influencing long-term thinking
Climate change is another area rising in importance, particularly in New Zealand. PwC notes growing concern about how natural hazards and climate-related events affect claims, pricing, and the availability of insurance in certain regions.
Deloitte’s global outlook reinforces this trend, pointing to the ongoing impact of weather-related losses on insurers and reinsurers worldwide. These pressures are influencing how risk is assessed and managed over time.
For policyholders, this does not mean insurance is disappearing, but it does mean climate risk is becoming a more visible factor in how cover is structured and priced.
Customer expectations are changing
Deloitte’s report highlights that customer expectations around insurance continue to rise. People increasingly value clarity, convenience, and seamless service, alongside reassurance and human support when it matters most.
PwC echoes this theme, particularly in relation to cyber and complex risks, where unclear policy wording or misunderstandings can create unnecessary stress. As a result, insurers are focusing more closely on communication, experience design, and transparency.
What this means in practice
Taken together, these reports suggest insurers are adapting to a more complex risk environment by modernising systems, strengthening governance, and responding to changing expectations.
For individuals and households, understanding these broader trends can help explain why the insurance experience is evolving. When questions arise about cover, digital tools, or how wider changes may affect personal policies, discussing these topics with your insurance adviser can help put them into context and support informed decision-making.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.