Participants at the workshop emphasized the need for closer collaboration between industry and policymakers. They said policy, regulation, and cross-border cooperation must work together to support innovative technologies and business models rather than constrain them.
Addressing The Global Protection Gap
One long-standing concern for insurers and regulators is the global protection gap, defined as the difference between insured and uninsured losses. Workshop participants noted that if affordability cannot be maintained, insurance premiums may rise beyond accessible levels or insurers may withdraw from certain risk categories entirely.
Technology and innovation were identified as key tools for improving efficiency and reducing costs. After natural disasters, insurers increasingly use drones to assess damage quickly and safely, including in hard-to-access areas. When paired with satellite data that provides broad historical coverage, these tools enable more comprehensive risk assessments and faster claims payments, supporting quicker rebuilding efforts.
Parametric Insurance And Specialist Markets
As traditional property insurance becomes more costly and less available in high-risk areas, parametric insurance products are gaining attention. These products pay out based on predefined triggers, such as storm intensity or wind speed, rather than individual loss assessments. This approach reduces underwriting and adjustment costs and can improve affordability.
Workshop participants also noted the continued growth of specialist insurance markets designed to cover more complex and severe risks, including properties exposed to extreme weather.
Dawn Miller, chief commercial officer at Lloyd’s, said parametric solutions represent some of the most transformative innovations emerging from Lloyd’s Lab, the market’s insurtech accelerator. She pointed to applications beyond natural catastrophes, including coverage for IT outages and supply chain disruptions, supported by automation and algorithmic underwriting.
From Reactive Response To Proactive Risk Strategies
Participants agreed that efficiency improvements alone are not sufficient to address rising risk complexity. Many insurers are shifting their focus toward prediction and prevention to help mitigate risks before losses occur.
Artificial intelligence and predictive modeling were highlighted as tools that can support this shift by helping insurers anticipate failures, fraud, and cyber threats while automating responses. However, leaders also raised concerns that regulatory fragmentation and data localization requirements can limit the global data flows needed to support these strategies.
AI Adoption And Cyber Risk Considerations
The growing use of AI across financial services introduces new risks alongside new capabilities. Participants cited emerging questions around liability for AI-related errors and noted that AI may increase the sophistication and volume of cyberattacks. At the same time, AI also provides tools to help defend against cyber risks, which are increasingly viewed as systemic.
Sara Farrup, head of global markets at AXIS Capital, said insurers have the data, expertise, and tools to play a broader role in developing long-term solutions. She noted efforts to strengthen data ingestion across legacy platforms, combine AI with event-based modeling, and invest in underwriting expertise to support climate and cyber protection.
Insurance As An Enabler Of Investment
Leaders at the workshop emphasized that insurance, working alongside the broader financial sector, plays a critical role in enabling growth, transition, and resilience by de-risking investment.
They noted that climate finance initiatives often overlook insurance’s role, even though capital cannot be deployed for climate adaptation projects unless those initiatives can be insured. Participants cited carbon capture and storage projects as examples of complex risk profiles where insurance solutions help address financing challenges and reduce the cost of capital.
Regulatory Barriers And The Need For Harmonization
Despite industry readiness to expand its impact, participants said insurers continue to face regulatory barriers. Some barriers reflect regulations that have not kept pace with new types of risk, while others stem from growing divergence across jurisdictions.
Workshop participants grouped these challenges into several areas: data governance and digital identity, AI and technology requirements, sustainability and ESG standards, and emerging geoeconomic measures.
They said governments and regulators must work alongside insurance and finance leaders to harmonize regulatory approaches and reduce unnecessary complexity. Participants also stressed the importance of long-term policy consistency and predictability to support sustained investment and innovation.
Source: World Economic Forum, Jan. 21, 2026
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