Insurers in Singapore show more anxiety to threats than global average: study

They are concerned with rising cybercrimes, AI risks, and macroeconomic uncertainty.

Singapore insurers are more anxious compared to their global counterparts amidst rising risks of cybercrimes, artificial intelligence (AI), and macroeconomic uncertainty.

City-state insurers’ anxiety was measured at a 3.44 index compared to 3.22 globally, PwC Singapore said in its Insurance Banana Skins report.

The report evaluated the most urgent risks facing the global insurance industry, PwC added.

Consistent with global findings, Singapore respondents identified cybercrime as the number one risk.

It has consistently ranked amongst the top concerns for Singapore insurers since 2017, and its rise to first place in 2025 reflects the sector’s expanding technology footprint, deeper reliance on third-party and cloud ecosystems, and threats that use AI in their attacks.

AI has moved into amongst the top two risks in 2025. Respondents identified broader AI challenges that are difficult to monitor and span multiple components and vendors.

Respondents also showed greater sensitivity to macroeconomic headwinds than global figures, which reflected Singapore’s status as a trade-dependent, globally connected financial hub that is influenced by tariff movements, currency divergence, and capital-flow fluctuations, PwC said.

The city-state’s preparedness stood at a 3.21 index, slightly below the global benchmark of 3.24, it added.

The Insurance Banana Skins 2025 gathered insights from 698 responses from 42 territories. Singapore provided the second-highest number of responses, with 70 out of 698 participants in the global survey.