Artificial intelligence now dominates the strategic agenda for insurers, brokers and other industry stakeholders — reflecting a shift from aspirational planning to urgent operational necessity, according to the International Insurance Society’s 2026 Global Priorities Report.

The survey of insurance industry executives associated with the International Insurance Society, the Pacific Insurance Conference, The Institutes, Insurance Thought Leadership and the Insurance Information Institute found that 71% of executives cited AI as the top issues across all categories of business priorities.

The IIS report’s findings signal a year in which risk managers and their insurance partners will need to contend with fast-moving technological disruption, unpredictable financial markets and a regulatory environment in flux — all while grappling with persistent talent shortages and evolving social pressures on the civil justice system, the survey report said.

Regulation and Economic Uncertainty Take Center Stage

For the first time in five years, changes in regulation surpassed cybersecurity as the top political and legal concern among insurance executives, cited by 53% of respondents. The shift suggests that risk professionals and their insurers are recalibrating their attention toward an increasingly complex and fragmented regulatory landscape — one shaped by divergent governmental approaches to AI governance, climate disclosure and market conduct.

On the economic front, financial market volatility emerged as the primary concern at 62%, overtaking inflation for the first time in four years. Recession fears also jumped by 11 percentage points compared to the prior year’s survey, according to the report. For risk managers, the combination of volatile investment markets and tightening regulatory scrutiny could translate into harder insurance market conditions and more cautious underwriting.

One senior property & casualty insurance executive quoted in the report pointed to the increasingly polarized political and social environment and its downstream effects on the civil justice system. That executive noted the erosion of bipartisan cooperation has “contributed to heightened distrust of institutions, including corporations and insurers, which in turn is influencing juror attitudes and litigation outcomes.”

The report identified social inflation — larger and less predictable jury verdicts, expanded theories of liability and greater willingness to punish perceived “deep pockets” — as a growing concern for insurance.

Technology Transformation and the Talent Crunch

The urgency around AI extends well beyond boardroom strategy sessions, according to the report. Technology modernization ranked as a top internal priority for 57% of executives, with many firms citing AI and automation as critical tools to streamline operations and protect profitability under tighter margins.

In a notable milestone, technological advancement was selected by 51% of executives as a top social and environmental priority — surpassing climate risk for the first time in the survey’s six-year history. Climate risk, while still a significant concern, fell to its lowest rate of prioritization since the study began, dropping from 60% in 2024.

Yet AI also presents a paradox for the insurance industry. Despite its status as the No. 1 priority, 17% of executives acknowledged their firms remain unprepared to address its full implications, the report found. That placed AI above only blockchain and distributed ledger technology in terms of organizational preparedness — a technology prioritized by just 4% of respondents.

Compounding the challenge is a deepening talent gap. Many executives surveyed identified talent and leadership shortages as a top internal concern, citing an aging workforce and a lack of specialized skills in data analytics and underwriting. The pressure to modernize systems while simultaneously building a pipeline of next-generation professionals creates competing demands on organizational resources.

Obtain the full IIS report here. &