2026-06-11 · Source: Risk & Insurance Magazine
Summary in 3 Points • Munich Re US and the Insurance Information Institute report highlights persistent coverage gaps in flood and cyber insurance • Survey identifies cyber, catastrophe, and artificial intelligence as top risk concerns for insurance buyers and sellers • Alignment on market threats exists, but significant protection gaps remain, impacting risk management strategies --- A recent survey conducted by **Munich Re US** and the **Insurance Information Institute** reveals that both insurance buyers and sellers are increasingly concerned about risks associated with cyber threats, natural catastrophes, and **artificial intelligence**. Despite this alignment on the key threats reshaping the insurance landscape, the report highlights ongoing coverage gaps, particularly in flood and cyber insurance. These gaps pose significant challenges for effective risk management, as the demand for comprehensive protection against these evolving threats continues to grow. For the **London Insurance Market**, the findings underscore the critical need to address these protection gaps to maintain market competitiveness and resilience. The persistent gaps in flood and cyber coverage could lead to increased exposure for insurers, potentially resulting in higher claims and financial instability. As the market grapples with the complexities of **artificial intelligence** and other emerging risks, insurers must innovate and adapt their product offerings to meet the evolving needs of their clients. **Underwriters** and **brokers** should prioritize the development of tailored insurance solutions that address these identified gaps, particularly in the areas of flood and cyber risk. By enhancing their understanding of **artificial intelligence** and its implications, they can better assess and price these risks, ensuring adequate coverage for policyholders. **Risk managers** are advised to collaborate closely with insurers to identify potential vulnerabilities and implement robust risk mitigation strategies, leveraging the insights provided by the survey to inform their decision-making processes.
For the London Insurance Market, the findings underscore the critical need to address these protection gaps to maintain market competitiveness and resilience. The persistent gaps in flood and cyber coverage could lead to increased exposure for insurers, potentially resulting in higher claims and financial instability. As the market grapples with the complexities of artificial intelligence and other emerging risks, insurers must innovate and adapt their product offerings to meet the evolving needs of their clients.