2026-11-12 · Source: InsuranceAsia News
Summary in 3 Points • APRA warns that AI investment challenges traditional underwriting methods, straining insurance capacity. • Maritime shipping faces geopolitical threats, necessitating improved intelligence and resilience measures. • IAG disagrees with ACCC's view on public benefits versus detriment in insurance. --- The Australian Prudential Regulation Authority (APRA) has raised concerns that the scale and concentration of artificial intelligence (AI) investments are straining traditional underwriting methods, potentially impacting insurance capacity. This shift may necessitate a reevaluation of underwriting practices to accommodate the evolving risk landscape associated with AI. In the maritime sector, increasing geopolitical threats such as missiles and cyber sabotage are prompting calls for enhanced intelligence and resilience measures. Insurers must adapt to these challenges to protect long-term asset value and operational reliability. Additionally, IAG's disagreement with the Australian Competition and Consumer Commission (ACCC) regarding the balance of public benefits and detriment highlights ongoing regulatory scrutiny in the insurance market. APRA's warning about AI investment challenges traditional underwriting, impacting capacity and necessitating adaptation in insurance practices.
APRA's warning about AI investment challenges traditional underwriting, impacting capacity and necessitating adaptation in insurance practices.